Investing in REITs: Exploring the Benefits of Real Estate Investment Trusts

Investing in REITs: Exploring the Benefits of Real Estate Investment Trusts

575,000 American properties are owned by real estate investment trusts (REITs).

If you're looking to get into the world of real estate investing, a REIT is a great way to go. REITs are companies that invest in and operate financially productive properties. They're designed like mutual funds so that many investors can come together and benefit from a set of properties.

Today, we'll explain some of the benefits of investing in real estate through REITs. Keep reading and you'll see how these types of investments can benefit beginner and veteran real estate investors alike.

Diversify Your Portfolio

REIT investments allow you to diversify your portfolio in a couple of different ways. It's important to make diverse investments to mitigate the risk of each investment. A strong and diverse portfolio might include real estate, stocks, bonds, and cash.

With a REIT, you're also diversifying your real estate investments. You'll get a stake in several different properties, so if one rental property isn't doing well, it won't make as negative an impact because the REIT has other properties to rely on.

Steady Cash Flow

The nature of REITs allows for a consistent return on your investment. Each REIT operates uniquely, but you can expect monthly, quarterly, or annual payouts. How much you receive and how often depends on your holding within the company.

This makes REITs a great option for everyone from the young real estate investor to the newly retired professional. Having a steady cash flow without having to worry about things like real estate marketing or tenant evictions is a fantastic prospect for any investor.

Tangible Assets

A lot of investments are somewhat intangible. You can put cash away, but you're at the mercy of a volatile economy where the value of that money could rise or fall significantly. The same is true of stocks and bonds, which are intangible pieces of a large pie that make up a company's ownership.

It's hard to feel as though you're holding onto anything with these types of investments. With real estate, you're still at the mercy of market fluctuations, but at least you're getting something that exists.

Accessible Investing

Everyone would love to get into real estate investing. There's nowhere safer to store your money than in something that shows that it'll appreciate over time. The problem for most people is that they can't afford to buy property.

REITs give investors of all financial backgrounds a chance to purchase a share. Choose the right broker and you can even purchase half shares, which are still a great investment.

Start With Real Estate Investment Trusts (REITs) Today

Now that you know why real estate investment trusts (REITs) are such a smart investment, you can get started with one today.

PMI Mountain West is a certified real estate investment partner that you can trust to help you find the right real estate in Bountiful, UT. Whether you're just starting or adding to an existing portfolio, our advisors can guide you through the process to a successful career in property investing.

To book a consultation, contact us today.