

How to Build Passive Income with REITs: A Beginner’s Guide
18 snips Feb 4, 2025
Discover how REITs allow you to invest in real estate without the hassle of management or hefty capital. Dive into the pros and cons of REITs versus traditional property ownership. Learn about various types of REITs and which ones yield the best dividends. Uncover tax advantages that make them a smart choice for passive income. Plus, get practical tips on buying REITs and avoid common pitfalls. Perfect for anyone seeking to build wealth without owning physical property!
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REITs vs. Real Estate
- REITs offer real estate exposure without direct property ownership.
- You own shares in a company that owns real estate, not the property itself.
90% Rule for REITs
- REITs follow the 90% rule, distributing most taxable income as dividends.
- This makes REITs attractive to income-seeking investors.
Equity REITs
- Equity REITs invest in income-producing properties like commercial buildings or cell towers.
- Examples include Realty Income Corp. (O) and Crown Castle Inc. (CCI).