Why You Should Invest in REITs


Brian l. katz

If you find yourself with a little extra income that you’d love to invest and hopefully multiply, you may be overwhelmed with your options. With so many different ways to invest your money out there today, it is a hard to choose just one or two. Of course you want the one that will give you the best return, but without being able to predict the future, how do you choose?

One of the best ways to decide how to invest your money is by first doing your research. When you know the ins and outs of all of your options, you’ll be better prepared to make your selection. One avenue that you certainly don’t want to ignore when searching for the perfect way to invest your money is real estate and REITs.

What Is a REIT?

Did you know that the commercial real estate industry is worth an estimated $945 billion dollars in the U.S., according to IBIS world research? If you want to invest your money in a growing and successful industry, real estate may be your ticket and one way to get in on the action is by investing in a REIT, or Real Estate Investment Trust.

Why Invest in REITs?

REIT is a term used for a company that either owns or finances real estate that will produce income. So, why invest in REITs? When you invest in a REIT you get all of the benefits of a real estate investment without ever having to worry about actually buying or maintaining a property yourself. Similar to a commercial real estate investment, REITs allow for consistent cash inflow as rent and other residential fees are associated with the property. These are just a few examples of the benefits of investing in REITs.

How to Invest in a REIT

If you’ve decided that a REIT investment is for you, your next step is to find out how to invest in REITs. This is where a broker, financial planner, or investment advisor can be of help. They will help you find a REIT that is increasing its earning and constantly creating new ways to generate revenue. Whether you are an experienced investor or not, it is a good idea to have a professional help you manage the inflow and outflow of your profits while you are investing in commercial real estate and/or REITs.

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