WHY I LOVE INVESTING IN REITs MORE THAN RENTAL PROPERTIES:
- REITs are TRULY PASSIVE!
- REITs are FINANCIALLY LESS RISKY!
- Lower Leverage - 40% vs. 80%
- Far Less Personal Liability - Can Only Lose Invested Capital
- Can Get Started with Just a Few Dollars without TAKING EXCESS RISK (don’t need cash reserves either)
- REITs are MORE DIVERSIFIED ...
- Geographically
- By Product Type
- Including: Apartments, Single Family, Ecommerce Warehouses, Data Centers, Hospitals, Medical Office Buildings, Office Buildings, Multi-Purpose Shopping/Office/Residential Destinations, Storage Units, etc.
- Lower Tenant Risk
- REITs are PROFESSIONALLY MANAGED
- Better at collecting Rent - 97% vs. 80% during COVID in Apartment Sector
- REITs have GREATER ECONOMIES OF SCALE
- REITs have GREATER ACCESS to CAPITAL
- REITs have LOWER FINANCING COSTS
- REITS can SCALE FASTER
- REITs “Volatility” Provides OPPORTUNITY
- REITs can be COMPOUNDED FASTER
- REITs have HISTORICALLY OUTPERFORMED PRIVATE REAL ESTATE ...
- 4% Higher Average Annual Returns Per Year in FACT!
- 15% per year on Average for REITs over the past 20 years, beating the S&P500
- REITs are currently trading at HISTORICALLY LOW VALUATIONS and have STRONG BALANCE SHEETS
Problems I often see with Rental Properties:
- People underestimate Costs … DRASTICALLY
- People don’t count the Cost of Their Time
- People don’t consider how Long it takes to Compound
- People don’t consider the risk/reward ratio
- People think having control means they will get greater returns
***** For the Cost of Property Management on just ONE Property, you can become a PRO Member and get full access to all of our Business and Investing Courses, including how to Invest in REITs for Passive Income.
Even more valuable though, you will get access to our Proprietary Research Tool with the Best REIT Investment Ideas each month as well as full access to our Model Portfolio and monthly updates as to what we are Buying or Selling and WHY! *****
