REITs: How to Invest In Real Estate With Little Money!

What are Real Estate Investment Trusts? (REITs) and are they better than physical real estate? Today we're going to go over what a REIT is, the benefits and risks of REITs, and we'll also go over what to look for in a REIT when it comes to adding it to your portfolio.

🙌 H E L P F U L L I N K S 🙌

🖌 Free Stocks:

Timestamps:
0:00 - Start Here
0:58 - Subscriber Shout Out
1:30 - What are REITs?
3:30 - Benefits of REITs
5:55 - Risks of REITs
8:15 - How to Anaylze REITs

What are REITS?
- A real estate investment trust: a company that owns a portfolio of commercial real estate. These are usually traded on the market so that means you can buy shares of them, just like buying stock in a company. So you can buy shares of a REIT and that entitles you to ownership benefits - one of which is dividend based income. And this is super powerful because REITS are required to pay 90% of their income back to their shareholders, aka you, as dividends.
- Owning a REIT also means you don't need to own any physical real estate, you can just buy shares of a REIT and get exposure to the popular real estate asset class - and this my friends is exactly how you can own real estate without having a crazy amount of money that you would need for a down payment on a physical property.

Benefits:
- Dividend Based Income
- Diversification
- Low Cost To Buy In
- Liquidity

Risks:
- Property Specific Risks
- Dividend Taxation
- Appreciation Might Be Limited

REITS have specific metrics that you can research to gauge the profitability of that REIT.

Those metrics include:

- Fund from Operations (FFO) and Net Operating Income.
- You can also look at the occupancy levels and the rent per square foot.

If you look at enough of these press releases from different REITs, you'll be able to get context for how to compare and contrast different REITs in the category you're looking for**.

Now admittedly, that's a bit too time consuming for me personally, and if I'm looking to invest in a REIT, what I would rather do is to invest in a REIT ETF.

You guys may know that an ETF invests in a lot of different stocks, so instead of picking one REIT, you can just invest in the REIT ETF that invests in hundreds of different REITS, thereby increasing your diversification.

Now overall, I think REITs are best as long term investments because there will be a lot of factors that influence a REITs price over the short term, such as interest rate hikes, and different economic sectors that can be influenced.

📲SOCIALS:

😺 WHO AM I: I am not a cat. My name is Humphrey Yang, I've built multiple businesses and am passionate about Personal Finance, Investing, among other things! If you're trying to build a solid foundation of financial literacy, learn to invest, or become financially free - then I'm here for you!

PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for.

[AnthonyJustice-ix]

I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Charlotte Miller.

[NicholasBall]

I remember in 2009 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[chrisbenoit]

for an 18 yr old just starting his financial future your videos have been so helpful

[CardeBlanche]

love your channel dude. was looking into REIT's the last few days have been researching whether or not it's worth it, so glad you posted this. thanks for the content!

[Riggsnic_co]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[dris]

Thanks Humphrey, I was waiting for REITs and you’ve provided such valuable information!

[Harperrr.]

I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my third house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.

[Rkelz]

Very informative and like the fact you laid out the pros/cons… thank you

[OliveGardin]

Love this, I want to get into the real estate market but I don’t have the capital! This is what I needed

[rachel.schmidt]

This is so helpful!! Thank you for your clear explanation 👌

[Dominica]

This is incredibly informative, thank you!

[jacquelinerondeau]

Clear summary of the basics. ..exactly as promised. Thanks.

[louisdaza]

First time I've heard of this, thank you!

[RosieVintage]

I’ve been waiting for a vid like this!

[AllThingsFinance]

I bought a big ol chunk of O in March 2020. I’ll never sell it. I buy my growth stocks with the dividends!

[Harry_]

REITs are cool - I own property without having to worry about replacing the roof ☺️

Love the channel, Humphrey!👍🏼

[imnoodlehaus]

Have really been learning a lot from your channel. Really appreciate your videos!

[nofear]

Masterclass on REITs for beginners. Thanks

[oualidradji]

I appreciate your hard work bro
Thank you 🙏

[dwardo]

I have a small portfolio with an aggressive strategy focused on REITs and other dividend stocks. My goal is to have a minimum of $60 of dividend income every month with the quarterly income slightly higher. It’s a small snowball at the moment, hopefully it turns into an avalanche.