REITs have long been a passive income generator for many who don’t want to deal with the trash, toilets, and tenants that come with rental property investing. No 2 AM phone calls, no listings, no showings, and no sales. With REITs (real estate investment trusts) you simply click a button, buy a share in the company, and wait for your passive income (dividends) to flow into your account. Seems pretty sweet right? Matt Argersinger from "The Motley Fool" agrees.
Matt isn’t your typical stock investor. He’s owned multiple rental properties and has even house hacked and put in some serious sweat equity. He knows that leverage and forced appreciation are huge wealth builders in the realm of real estate, but still chooses to invest in REITs instead of rentals. Why? Matt is focused more on creating passive income—as in TRULY passive income—no tenant surprises or maintenance calls to make. Matt wants to research, invest, and let his net worth grow, all while still receiving real estate-generated cash flow.
Maybe you’re skeptical. How can passive investing be so easy? If you’re brand new to REITs, Matt does a phenomenal job at explaining what they are, how they work, which types to buy, and what you can do to get started investing today. Regardless of your knowledge of the stock market, if you like income-producing real estate, this episode is for you.
00:00 Intro 04:27 Quick Tip 05:25 Matt's Passive Income Portfolio 08:46 What is a REIT (Real Estate Investment Trust)? 12:32 Why Buy REITs Instead of Rentals? 22:50 Undervalued Investing 26:23 What to Look For in a REIT 30:24 How Long Should You Hold REITs? 35:10 The Dangers of Day Trading 39:46 Where to Research REITs 44:14 Types of REITs Worth Buying 54:27 Other Benefits of Investing in REITs 58:44 Famous Four