REITs: Passive Income Through Real Estate
REITs: Passive Income Through Real Estate
For those seeking real estate exposure without directly owning and managing properties, REITs are a compelling alternative with stock market liquidity and rental income.
What Are REITs?
Companies that own and manage income-producing real estate, required to distribute at least 90% of taxable income as dividends. Traded on stock exchanges with immediate liquidity.
Types of REITs
Equity REITs (direct ownership), Mortgage REITs (real estate financing), Hybrids. Sector specializations: industrial, data centers, healthcare, residential, hospitality.
Portfolio Benefits
Diversification through low correlation with stocks and bonds. Reliable income and inflation protection.
How to Get Started
Individual REITs available for purchase through any broker. REIT ETFs for instant diversification—an excellent starting point for those new to real estate.