Generating passive income through REITs

capri · Jun 22, 2023

By definition, Real Estate Investment Trusts (REITs) denote investment programs through which interested people make monetary contributions that enable them to acquire rights in interests or trusts. These interests/trusts in turn qualify investing parties to earn income or profit from real estate.

I think REITs are viable especially to individuals who are unable to individually amass the large amount of money that are usually required to construct real estate properties.
What do you think?

Passiveearner · Jun 22, 2023

I have never heard about this program or method of making money before. Do you mean that people usually buy some kind of security which i backed up by real estate properties or something like that?

capri · Jun 23, 2023

Passiveearner said:
I have never heard about this program or method of making money before. Do you mean that people usually buy some kind of security which i backed up by real estate properties or something like that?

You are right. With REITs, investors contribute an agreed-upon sum of money that goes into financing the construction of real estate properties. A corporate entity overseeing this program uses the income obtained from such real estate properties to pay some dividends to the investors.

Passiveearner · Jun 24, 2023

capri said:
You are right. With REITs, investors contribute an agreed-upon sum of money that goes into financing the construction of real estate properties. A corporate entity overseeing this program uses the income obtained from such real estate properties to pay some dividends to the investors.

Well, if that is the case, then the value of such kind of securities may fluctuate or increase, depending on the volatility factor. this would be quite equivalent to buying shares of a company. In this case, it is real estate industry.

Bisolami · Jun 25, 2023

capri said:
You are right. With REITs, investors contribute an agreed-upon sum of money that goes into financing the construction of real estate properties. A corporate entity overseeing this program uses the income obtained from such real estate properties to pay some dividends to the investors.

Well, this seems to be very good. Do you mean that if the company i invested in make a sales, I will have the right to take some money from the money that they have made. Is that what you mean?

Stardom22 · Jun 25, 2023

Of all the passive ways of income, the real estate investments is deemed to be very reliable, profitable, guaranteed and . lucrative.
However the venture needs an intensive amount of capital.

Passiveearner · Jun 28, 2023

Bisolami said:
Well, this seems to be very good. Do you mean that if the company i invested in make a sales, I will have the right to take some money from the money that they have made. Is that what you mean?

I think that this is what he meant. When a company generates huge amount of sales and earns profits, the value of the shares may increase a lot in case if the company is registered with the stock exchange. This is how many shareholders make money.

Rubz · Jul 1, 2023

I've not seen or come in contact with anyone who makes passive income from real estate investment trusts but from what you've explained, it seems like a really good means to earn passively.

timewo · Jul 2, 2023

REITs are usually a profitable investment option, since most businesses require an office and are often paying very high rentals. However they require higher minimum investment compared to mutual funds which some people cannot afford.

nomad · Jul 5, 2023

The concept of Real Estate Investment Trusts does not exist in my home country. If you want to earn passive income through real estate in my home country, all you need to do is buy a property and put it on rent.

Authenticity101 · Jul 6, 2023

That sounds like a good plan for those people who don't have large amounts to invest solely in real estate. You can join many other people and enjoy the profits. I know it will be lower than those investing alone, but at least you have some passive income.

eldavis · Jul 7, 2023

My first time hearing about this, i don't even know if this is available in my country but i believe it's possible. It sounds nice though, to be able to earn through this way.

Generating passive income through REITs

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