BiggerPockets Real Estate Podcast

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

Jul 24, 2022

In this engaging discussion, Matt Argersinger from The Motley Fool shares his unique approach to real estate investing through Real Estate Investment Trusts (REITs). He reveals the simplicity of investing in REITs compared to traditional rentals, emphasizing the allure of truly passive income without the headaches of tenants. Matt explains the benefits, key metrics, and strategies for new investors, while also reflecting on the importance of emotional detachment in investing. Get ready to see real estate in a whole new light!

01:09:10

Episode guests

Matt Argesinger

Highlights

AI Chapters

Episode notes

Investing in A handle of industry sector reits (Storage, Multifamily,)

01:25

What Are the Key Earnings Metrics?

01:10

INVH reit- sfh rentals

01:19

Intro

4min

Exploring the Benefits of REITs for Passive Income

2min

Anticipation for New Insights and Diversifying Investments

2min

Investing with Confidence: REITs and Portfolio Strategies

6min

Navigating Real Estate and REITs

25min

Emotional Detachment in Real Estate Investing

2min

Investing in REITs: Key Metrics and Tools

9min

Navigating the Risks of Mortgage REITs

17min

The Key to Success in Investing: Emotional Fortitude

2min

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!

Links from the Show

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