Are you considering investing in real estate? There has never been a better time! In December 2020, the median sales price for a home was $355,900.
Are you thinking about getting started with REITs? What are they and what are the different types of REITs? Read on to explore this guide on REITS and how lucrative they can be today!
How Do REITs Work?
Once you have REIT dividends, you can buy shares in 3 different methods. You can buy them on where your real estate focus is, based on the different types of investments, or how their shares are traded.
REITs show partial ownership of all of the individual assets held by the fund. When there’s a change in the price or value of a REIT, this shows the change in the overall collection of real estate properties. Make sure that you’re aware of different laws as well and reach out to estatelawtexas.com.
1. Healthcare REITs
Related to real estate investment trusts, you have healthcare REITs that are profitable right now. These are investments in properties such as medical office buildings, hospitals, assisted living, and hospitals. Healthcare REITs are a great option since there will always be a need for healthcare.
2. Infrastructure REITs
Companies need space in order to operate their business. This is where an expert investor will finance the buildings and land for wireless and telecom towers, fiber cables, and energy pipelines.
3. Residential REITs
Whether you’re looking for new property rentals or multifamily dwellings, there are various options with residential REITs. This can include student campus housing, apartment complexes, and single-family rentals as well.
4. Equity REITs
Many REITs fall under equity REITs. This will give you access to diverse portfolios of assets that you might not be able to afford on your own.
Real estate companies will have various properties including shopping centers, office buildings, apartment complexes, etc. You’ll receive a large part of your income in the form of dividends.
5. Retail REITs
There are a wide variety of REITs that are considered retail or shopping malls. Before deciding on retail REITs, take a look at the shopping center near you and see how they’re doing financially. You’ll make money based on the rent that they charge tenants.
Due to poor sales, tenants might not be paying for their rent. If this occurs, they’ll find a new tenant for that area which can be difficult. Your best options tend to be home improvement and grocery stores.
Keep in mind that shopping is turning to online options. While the owners try to make good use of the space, they still feel the pressure from people buying online.
Exploring the Different Types of REITs Today
After exploring this guide, you should have a better idea of what to expect when it comes to the different types of REITs. Take your time deciding what’s the right REIT for your needs and finances.
Would you like to read more real estate content? Check out our other articles today!