When entering the market, I thought just being able to buy stocks was pretty cool. Then I learned about ETF’s, index funds, and then… REITS! I could get in on the Real Estate action without having to actually own or better yet, manage the property myself.
When looking into REITS, there are so many to choose from, especially ones that capture entire sectors, like hospital and medical centers, or government buildings, and properties. What you need to do is check into REITS that match your investing thesis, and research which REITS would best.
Now a REIT is great when it comes to dividends and appreciation, because they must pay out 90% or more of their taxable profits to shareholders. Of course there are always lulls or dips in the market or economy that can take real estate down, or make it unattractive, but remember, you don’t own the properties yourself and instead can still lower your average cost of the REIT by using DRIP on those dividends they pay out.
I know not everyone is a fan of dividends, but I am, especially when your brokerage allows DRIP (Dividend ReInvestment Program) and can help lower your average cost over time.
Another great way to own real estate is through an App I’ve talked about before, Fundrise. It’s basically a REIT that isn’t on a stock exchange. They take the money you put in, and buy properties that go with a certain thesis or portfolio. They purchase all sorts of properties, from retirement developments, to apartments in new up and coming areas, to strip malls, and warehouse centers.
Fundrise is not immune to market trends and market dips, it’s tied to real estate, so you should always remember it’s for the long haul, not a quick buck. Most of the funds you have in Fundrise can only be taken out on a quarterly basis, so it’s not very liquid, but it does give you another opportunity to own properties without having to physically manage them yourself.
What investment vehicle do you use to get into real estate?
Thrifty Investing 
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