5 Key Reasons to Invest in REITs

For those that know me or have talked with me for more than 5 minutes in a casual conversation (sorry, but not really), you have probably had me remark on investing in REITs, specifically the private REIT Fundrise or the public company Realty Income (O). Real Estate Investment Trusts (REITs) have become an essential part of a well-rounded investment portfolio throughout the years, especially as the market has grown increasingly irrational and volatile. REITs are public (or private) companies that own, operate, or finance income-generating real estate investments. This includes office buildings, shopping centers, apartment complexes, occasionally single family homes and other properties. REITs offer investors, like yourself, the opportunity to invest in large scale commercial and residential real estate without actually having to purchase physical property. One can imagine, that is quite appealing.

Why Should I Invest in REITs?

Real estate has long been viewed as one of the best investments in America. Don’t just take my word for it though. According to renowned investor, Warren Buffett, “Real Estate is a terrific investment because you can leverage your dollars and make more money”. Real estate investment trusts (REITs) are also seen as an attractive option for investors looking to diversify their portfolio. Author Robert Kiyosaki states: “Real estate is the best way to build real wealth. It’s an investment that will continue to appreciate over time.” Finally, author Thomas J. Stanley famously said: “ Real estate has been responsible for more millionaires than any other industry”. With such powerful insights from experienced investors and authors, it’s no surprise why real estate remains one of the most popular investments in America today.

There is a slew of creative thinking and analytical research required to successfully search, purchase, and maintain investment properties. By investing in REITs like Realty Income (O), they take care of a lot of the heavy lifting. That term can be used quite literally in this example if you have ever flipped a house or done construction on a home or property. The management team of REITs evaluate market trends and understand local regulations to ensure they make as informed decisions as possible about their allocation of capital, thus maximize returns while minimizing risks for you as the investor.

About Realty Income (O)

Realty Income (O) is one of the largest Real Estate Investment Trusts in the United States with nearly $60 billion in total assets under management. It acquires and owns over 11,000+ net lease properties across 49 states as well as Puerto Rico yielding excellent returns for those that invest in the company. Real estate investing through REITs like Realty Income (O) can be done through a brokerage such as TD Ameritrade or Schwab. Purchasing shares of these companies truly is an exceptional way to diversify your portfolio and invest in stable, income-generating assets. Don’t forget they are passive as well. Since there are more than one public and private REIT available to invest in, analyzing which one(s) to invest in is a critical step before making any decisions and investors should do their due diligence to ensure that they get the best returns for their money. Real Estate Investment Trusts are an essential part of a well-rounded investment portfolio, and Realty Income (O) is a great choice for those looking to invest.

Here is a short 5-point recap and emphasis on what makes investing in REITs, specifically Realty Income (O), a truly passive and long-term investment.

1. Real Estate Investment Trusts (REITs) are a great way to invest in real estate without the hassle of owning or managing properties. Realty Income (O) is one of the best REITs for investors who want to take advantage of this passive income opportunity with minimal effort and maximum returns.

2. Not only does investing in Real Estate Investment Trusts provide access to steady and reliable returns, but it also offers liquidity and the ability to buy/sell your shares at any time you wish. With Realty Income (O), you can easily adjust your portfolio, making it ideal for both long-term investments as well as short-term gains.

3. Real Estate Investment Trusts also provide a great risk/reward balance. Real estate investments tend to be more stable and less volatile than other types of investments, making them an ideal choice for those looking to diversify their portfolio.

4. Realty Income (O) has had an impressive 10 year return of over 200% (that number includes reinvesting their monthly dividends) while currently offering a dividend yield of 4.5% and a trailing twelve month yield of 5% (at the time of this writing). This is proof that Real Estate Investment Trusts can provide reliable returns in both the short and long-term.

5. Investing in Real Estate Investment Trusts, such as Realty Income (O), provides investors with the best of both worlds: the potential for steady passive income combined with the ability to adjust your shares at any time. This makes Real Estate Investment Trusts an ideal option for any investor looking to diversify their portfolio.

Realty Income (O) provides investors with reliable returns, a low risk/reward balance and the ability to buy/sell your shares at any time — making it one of the most suitable Real Estate Investment Trusts for passive income. With its impressive 10-year returns and current dividend yields, this investment option is a great way to grow your wealth with minimal effort for years to come.

*This is not financial advice. For educational purposes only.