Thread by @itsKostasOnFIRE, Do you want to invest in real estate but cannot afford the [...]

Kostas on F.I.R.E. 🔥

itsKostasOnFIRE

Do you want to invest in real estate but cannot afford the downpayment?

Here is how you can become a real estate investor with only $100 per month

/THREAD/

1/ REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors.

These real estate companies have to meet a number of requirements to qualify as REITs.

2/ Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

REITs provide all investors the chance to own valuable real estate, and the opportunity to receive dividend-based income.

3/ REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries through:

1. The purchase of an individual company stock

2. A mutual fund

3. An exchange-traded fund (ETF)

4/ The stockholders of a REIT earn a share of the income produced through real estate investment.

And this without actually having to go out and buy, manage or finance any property.

5/ To qualify as a REIT a company must:

1. Invest > 75% of its total assets in real estate

2. Derive > 75% of its gross income from real estate assets

3. Pay > 90% of its taxable income to the shareholders via dividends

6/ 4. Be an entity that is taxable as a corporation

5. Be managed by a board of directors or trustees

6. Have > 100 shareholders

7. Have < 50% of its shares held by five or fewer individuals

7/ There are different types of REITs

1. Equity REITs: They own or operate income-producing real estate

2. mREITs (or mortgage REITs): They earn income from financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities

8/ 3. Public Non-listed REITs: They are registered with the SEC but do not trade on any national stock exchanges

4. Private REITs: They are exempt from SEC registration and their shares do not trade on national stock exchanges.

9/ REITs invest in a wide range of real estate property types

Offices

Apartment buildings

Warehouses

Retail centers

Medical facilities

Data centers

Cell towers

Infrastructure

Hotels

10/ Most REITs focus on a particular property type, but some hold multiple types of properties in their portfolios.

REITs historically have delivered competitive returns, based on high, steady dividend income and long-term capital appreciation.

11/ Their comparatively low correlation with other assets also makes them an excellent choice to diversify your portfolio.

If you are a beginner investor willing to invest in real estate, REITs are the best and most affordable choice for you.

/END/

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