Make cash like a landlord with no BS.
With the economy being more fragile than ever, and not knowing what tommorow holds some investors are looking into investing in real estate propreties to get more of a stable income.
But did you know that being a actual landlord has some cons as well such as
- Having to maintaing the building
- Having to find quality tenants
- If you do have a tenant that does not pay his rent then the only solution is a costly civil case in court which may not be worthwile
- Having to put down 20% on the rental proprety for a mortgage
But there is another solution to this, and it’s call REITs (Real Estate Investment Trust)
Now the big advantage is not having to deal with all these cons as stated above and simply getting paid every month.
Now how does it work you ask? Well first you should open a stock account thru a online brokerage, if you are in Canada, the cheapest in Questrade, which I use. You buy stock shares of REIT and they will pay you a devidend every month since you shares are invested in several real estate buildings. Depending in what company you invest, your real estate investements could be in residential or commercial or even both.
I would recommend that if you are an investor in mutual funds, stocks, index funds or etf you should have in your portfolio between 10 to 25% of your portfolio in real estate.
So if you are thinking about investing in real estate why not look ito REIT, you’ll be glad you did.
p.s. also you don’t need millions to in vest in REIT.You can open an account with Questrade with $1 000. The more shares you have the more revenue you will receive monthly. With about $100 000 in REIT, you can get about $500 per month on average and possibly even more.
Until next time,
Antonio
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