Is A Real Estate Investment Trust A Good Idea?
Get a FREE trial of our life-changing Financial Peace University today:
Visit the Dave Ramsey store today for resources to help you take control of your money!
Ramsey Solutions YouTube Channels (Subscribe Now!)
• The Dave Ramsey Show (Highlights):
• The Dave Ramsey Show (Live):
• The Rachel Cruze Show:
• The Ken Coleman Show:
• Christy Wright:
• Anthony ONeal:
• EntreLeadership:
Did you miss the latest Ramsey Show episode? Don’t worry—we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at:
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
• The Ramsey Show (Full Episodes):
• The Dr. John Delony Show:
• The Rachel Cruze Show:
• Anthony ONeal:
• The Ken Coleman Show:
• The Christy Wright Show:
• EntreLeadership: …(read more)
LEARN MORE ABOUT: IRA Accounts
INVESTING IN A GOLD IRA: Gold IRA Account
INVESTING IN A SILVER IRA: Silver IRA Account
REVEALED: Best Gold Backed IRA
Real estate investment trusts (REITs) have gained popularity among investors due to the potential in generating attractive returns and diversifying portfolios. This unique investment vehicle allows individuals to invest in real estate without the hassle of directly owning and managing properties. But is a real estate investment trust really a good idea? Let’s delve into the benefits and drawbacks to find out.
One of the most enticing aspects of investing in REITs is the potential for consistent income. By law, REITs are obliged to distribute a significant portion of their taxable income to shareholders through dividends. This makes them an appealing option for income-oriented investors seeking a regular cash flow. Moreover, as real estate tends to hold its value well over time, combined with potential appreciation of property prices, investors may also see capital gains from investing in REITs.
Additionally, REITs offer individuals the opportunity to invest in a variety of properties, such as office buildings, apartment complexes, shopping malls, and even healthcare facilities. This diversification can be valuable in minimizing risks associated with individual properties or specific real estate sectors. Investors with limited capital can also benefit from the ability to access high-value properties or portfolios that are typically out of reach for individual investors.
Another advantage is the liquidity that REITs provide. Unlike owning physical properties that may take months or even years to sell, shares of REITs can be easily bought or sold on the stock market. This allows investors to quickly adjust their portfolios in response to changing market conditions or personal financial goals.
However, it is important to consider the potential drawbacks when considering investing in REITs. Firstly, due to their nature as investment vehicles, REITs are subjected to management fees and expenses, which can eat into potential earnings. Investors should carefully evaluate these costs and conduct thorough research to ensure that the potential returns outweigh the related expenses.
Moreover, like all investments, REITs are not immune to market fluctuations or economic downturns. Real estate markets can rise and fall, impacting the performance of the underlying properties owned by the REIT. Additionally, changes in interest rates can affect the borrowing costs for property acquisitions and operations, thereby impacting the revenue stream and profitability of the REIT. Investors should be prepared for possible fluctuations and consider their risk tolerance before investing in REITs.
It is also worth noting that investing in REITs requires the same level of due diligence as with any other investment. Investors should carefully review the financial statements, management team, portfolio composition, and future growth prospects of the REIT they are considering. Conducting thorough research and considering professional advice can help investors make informed decisions.
In conclusion, while there are benefits to investing in real estate investment trusts, it is essential to weigh the advantages against the potential drawbacks. REITs can provide a steady income stream, diversification, and liquidity, making them an attractive option for income-oriented investors. However, investors must be aware of management fees, market fluctuations, and the need for proper due diligence. By considering these factors and understanding one’s own investment goals and risk tolerance, one can determine whether investing in a real estate investment trust is a good idea for their financial future.
Anyone that invested in a Reit and done well, would you mind sharing which one you went with?
I will advise to try investowith Robinhood, PFI trades, skysloop, Brivity They are a good please to invest. I have tried them and I think PFI is better because it’s possible to withdraw profits any time you wants
We invest in a REIT etf on my channel and it got hammered in 2022. Still holding and collecting dividends though!
I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my third house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.
Sounds like he's talking about Syndications, not REITs.
A real estate investment trust (REIT, pronounced "reet") is a company that owns, and in most cases operates, income-producing real estate.
REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping centers, hotels and commercial forests.
Some REITs engage in financing real estate.
Most countries' laws on REITs entitle a real estate company to pay less in corporation tax and capital gains tax.
REITs have been criticised as enabling speculation on housing, and reducing housing affordability, without increasing finance for building.
REITs can be publicly traded on major exchanges, publicly registered but non-listed, or private.
The two main types of REITs are equity REITs and mortgage REITs (mREITs).
In November 2014, equity REITs were recognized as a distinct asset class in the Global Industry Classification Standard by S&P Dow Jones Indices and MSCI.
The key statistics to examine the financial position and operation of a REIT include net asset value (NAV), funds from operations (FFO), and adjusted funds from operations (AFFO).
I will forever be indebted to you, Mrs Constant Carlotta. You have changed my entire life. I will continue to preach in your name for the world to hear that you saved me from huge financial debt with just a small investment. Thank you very much!
REITs have actually materially outperformed private equity according to several studies. They generally outperform by 2-4% per year and this is because they enjoy significant economies of scale, develop their own properties, earn profits from other real estate-related profits, skip transaction fees, and many other reasons. But please stay away from private REITs. They are typically externally managed and suffer significant conflicts of interest! I will soon make a video on this topic.
Thanks for the video!
Anyone heard of RAD diversified
I personally love illiquid investments. If it's a good investment I don't want to do something stupid and sell it.
So I guess the takeaway, win some lose some, break even. THE HOUSE A.K.A. ETF S AND P ALWAYS WINS.
I love hearing him say that!
Reits done well and maximizing income and reinvestment may very well lead a person to an early retirement
Thank you Dave…
Well that answers the question of Fundrise lol
lol wow he strikes again, and yes I would go public versus private these days
as far as reits goes, thanks for confirming that lol
I find rental properties hard to manage. Are reits a good alternative?
I have most of my portfolio invested into various REITS and mREITS, as I only have a 10 year time frame until I retire, so I want to collect as much as possible in distribution payouts so I can supercharge my compounding interest plus build up an income portfolio to some day draw from. My wife, who is a bit younger, has the S&P in her IRA and we also have a joint account with another ETF to stay diversified. This was the best I could do since I did not start investing until later in life
Better than I deserve what’s up
Anyone have examples of good reit’s?
I am a real estate investor and I can say Daves advice when it comes to stocks is decent but the real estate stuff is ROCK SOLID!!
Great response! Thank you for your wisdom.
horribly vague advice.
Ramsey gives good advice as an old grandpa who has seen it all but the newborns just don't get it
Private investing is pretty much reserved for those who are willing to invest long term. If you're just trying to make quick cash and beat it, then private investing is not for you..
Mrs Patricia is legit and her method works like magic I keep on earning every single week with her new strategy
This clown always wants people to deleiver pizza and says all forms of investing is not good even though thats how we made his money
What public reits was he talking about?