If you’re residing in a high cost of living area like Boston, the idea of investing in real estate may seem daunting. If you’re interested real estate investing but can only afford to invest a small amount, REITs may be a good option for you!

As mentioned in the video, here is a link if you’re interested in joining Fundrise:

Chapters
00:00 – Intro
01:17 – The Concept: Investing in REITs!
03:52 – Private REIT: Fundrise
06:38 – Public REIT: Vanguard Real Estate ETF
07:53 – Public REIT: Realty Income
08:38 – Other options
09:30 – Thanks for watching!…(read more)

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Real Estate Investment Trusts (REITs) are a popular way for individuals to invest in real estate without actually owning physical property. REITs allow investors to pool their money together to invest in real estate properties or mortgages, and in return, they receive dividends from the income generated by these investments.

If you are interested in investing in REITs, here are some steps to get started:

1. Understand the Basics: Before investing in REITs, it is important to understand what they are and how they work. REITs are companies that own, operate, or finance income-producing real estate. They are required to distribute at least 90% of their taxable income to shareholders in the form of dividends, which can provide a steady stream of income for investors.

2. Research different types of REITs: There are several types of REITs, including equity REITs, mortgage REITs, and hybrid REITs. Equity REITs own and manage income-producing real estate, while mortgage REITs invest in mortgages and mortgage-backed securities. Hybrid REITs have a combination of both equity and mortgage assets. Each type of REIT has its own risk and return profile, so it’s important to understand the differences before investing.

3. Evaluate performance and track record: When considering investing in REITs, it is important to research and evaluate the performance and track record of the REITs you are interested in. Look at factors such as dividend yield, earnings growth, occupancy rates, and the quality of the assets in their portfolio.

4. Consider the macroeconomic environment: The performance of REITs is closely tied to the macroeconomic environment, as it impacts the demand for real estate and interest rates. Before investing, it is important to consider factors such as the state of the real estate market, interest rate trends, and overall economic conditions.

5. Diversify your investments: Like any other investment, it’s important to diversify your REIT investments to spread risk. Consider investing in different types of REITs across different sectors and geographic locations to reduce the impact of any single investment’s performance on your overall portfolio.

6. Understand the tax implications: REIT dividends are typically taxed at a higher rate than qualified dividends from stocks. It’s important to understand the tax implications of investing in REITs and how it will impact your overall tax situation.

7. Monitor your investments: Once you’ve invested in REITs, it’s important to monitor your investments regularly. Keep track of the performance of the REITs in your portfolio, stay updated on market and economic conditions, and reassess your investment strategy as needed.

In conclusion, investing in REITs can be a great way to gain exposure to the real estate market and generate income. However, like any investment, it’s important to do thorough research and consider various factors before making investment decisions.