Investing in REITs: Key Metrics and Tools | 9min snip from BiggerPockets Real Estate Podcast

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639:Passive Income (Without the Properties!) by Investing in REITs w/Matt Argersinger

BiggerPockets Real Estate Podcast

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CHAPTER

Investing in REITs: Key Metrics and Tools

This chapter explores the fundamentals of investing in Real Estate Investment Trusts (REITs), focusing on essential financial metrics and resources for informed decision-making. It introduces platforms like Baselane, Kiavi, and Resimply that aid investors in managing their real estate investments efficiently.

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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.

In This Episode We Cover:

What are REITs (real estate investment trusts) and how they work

Why buy REITs instead of rentals, plus the benefits of both

Cheap REITs that are becoming undervalued as the stock market crashes

Mortgage vs. equity REITs and why higher cash flow could mean higher risk

The dangers of day trading and how long investors should hold onto REITs

The key metrics any investor needs to research before investing in a REIT

And So Much More!

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