Real estate is often considered one of the best ways to create wealth and generate passive income. However, not everyone has the time, money or expertise to manage a rental property or flip houses. Fortunately, there is another option for passive real estate investing, without the hassle of active management: real estate investment trusts (REITs). In this article we’ll explore the pros and cons of REIT investing as an alternative to physical real estate.
What Are REITs?
REITs are companies that own and operate income-generating real estate properties, such as apartments, office buildings, shopping centers, and warehouses. They allow investors to invest in real estate without owning physical properties themselves.
REITs must meet certain requirements to qualify as a REIT under U.S. tax law. For example, they must distribute at least 90% of their taxable income to shareholders in the form of dividends, and at least 75% of their total assets must be invested in real estate.
Read the full article here; Passive real estate investing with REITs