Most people, when they think about real estate investing, think about HGTV and high caffeinated flippers running around town buying up homes at auctions with an interminable supply of cash, getting greasy with the rehab, contractor management, and suffering an emotional roller coaster. That doesn’t have to be the case, though.
Here is an article at USA Today about REITs by John Waggoner. REITs (Real Estate Investment Trusts) are securitized real estate. It is an interesting read for anyone who is not familiar with REITs or wants to get some insight on the current market.
With REITs, you are essentially buying a small chunk of a real estate portfolio. Usually commercial properties like malls, apartments, and hotels, different REITs have different specialties or geographic concentrations that you will want to look into. They usually have a modest return, but are much more accessible and “passive” than most active investor strategies like flipping, wholesaling, and landlording.
REITs are firmly regulated by Uncle Sam, who, for example, requires 90% of all profits to be paid out to you, the investors.
For the more risk adverse, there are REIT ETFs (Exchange Traded Funds). These try to track the movement of several or many REITs, dispersing the ups and downs of a single fund through many.
The REITs do operate in the Killeen area. I’ve gotten under contract a home owned by and formerly rented out with American Homes 4 Rent, one of the largest national single family home REITs in operation.
REITs and ETFs can be a great vehicle for minimal hassle real estate investing. Check out Waggoner’s article. I thought it was great and wanted to share.
Brian E Adams, REALTOR®, GRI
StarPointe Realty Central Texas LLC
Licensed in the State of Texas