It’s often the crucial factor to get advantages of investing in Real Estate Investment Trust (REIT). It’s because this is a driving factor for homeowners for the first time. But, a higher amount of down payments might be a big hill to go up.
That’s also true for you if you’re looking to buy a rental property because of your reliable income stream. Luckily, the real estate investment trust fund is the other way to make good use of your money.
It’s a unique type of deal that has features of both a real estate and regular stock investment. As it’s a unique type of investment option, it offers opportunities to get high profits from the real estate market with only a small commitment on your part.
Begin with a Lower Commitment
You can begin investing in REITs with an incredibly lower financial commitment, unlike investing in property. You publicly trade REITs like a common stock. So, you may purchase a REIT using the brokerage account in the most significant brokerages.
There is a very famous REIT named Public Storage that trades under ticker symbol PSA on the Stock Exchange of New York. Every piece of the share of the PSA costs around $200. You have the option to buy just one of these shares from the marketplace at the market rate.
If you compare it with direct investment in real estate, it’s a very nominal amount. It’s because direct investment in real estate requires a minimum of ten thousand dollars to initiate.
Nothing to Worry About Emergency Repairs
It depends on you to manage problem tenants, collect rent, and resolve other possible issues that arise. It’s especially applicable if you invest straight in leasing property. Of course, you have options to outsource or hire a manager for the properties.
But, it usually takes 10% of the revenue. You don’t need to be afraid of managing a tenant with a REIT. By local and state law, landlords want to execute a particular maintenance level. More importantly, little maintenance requires getting right away to avoid further damage.
Indeed, all small-time landlords have a dismaying story about getting rouse in the mid-night for emergency repairing. But, you don’t need to handle any repairs if you invest in a REIT.
Accessible to Buying Like Stock
By now, you know well what things and aspects make this type of investment, REIT unique. But, you might don’t know that it’s also straightforward to buy the shares of REIT.
The process is almost similar to buying like stock. That means buying the shares of REIT is simple, unlike purchasing a home that often needs to get help from a real estate agent, lawyer, and accountant.
You’ll be able to invest using your phone within minutes if you get currency sitting in the account. Buying a REIT is one of the most excellent ways to get the first investment in real estate with prospects to make a big profit without doing direct investing.