Many people will be wondering how to invest in REITs, worry less because in this article today we going to be discussing how to invest in REITs and the best REITs to invest in, we will also be talking about REITs stock and for beginners how you are going to invest on REITs and other things that will be useful for us all.
What are REITs?
Real Estate Investment Trust (REIT) is a company that owns and usually operates related assets and income-producing real estate, they allow people to invest on a large scale. The related assets include hotels, office buildings, apartments, shopping malls, warehouses, mortgages, and so on. REITs do not buy and develop properties to sell them again, instead, they buy properties and develop them to operate as part of their own investment portfolio.
How To Invest In REITs
- As an individual you can purchase/buy shares in a REIT which has been listed in the major stock exchange, you can also buy shares in a REIT in an exchange-traded fund (ETF) or REIT manual fund. To do this one have to open a brokerage account or if your work or retirement plan has to offer REIT investment then you can use the other option to invest. Make sure you check to see what REIT investment is available with your plan administrator.
- When you have to open your brokerage account, the processing is simple and straightforward all you need to do is to provide your contact details and some of your personal details like your valid ID, etc you will also be asked for some additional information like your type of occupation, your income and your experience before of investing.
- You will be able to sign up on their mobile app or their online website or a branch location where you can see someone to talk to but it all depends on the choice of broker you have chosen.
- After you have opened your brokerage account and you can easily access it online, then you have to use research tools to begin to search for the REIT investment that is available, your account should have a screening tool that can help you adjust your selection and research.
- Once you are done checking for the best investment that suits your financial and investment goals then you can now process buying it online. Note: before buying it you need to understand their charges fees that they will charge and the expenses which are associated with the normal investment which are the (fund expenses ratios)
- You can now monitor your REIT investment periodically
Best REITs To Invest In
Here are the names of companies that you can invest in because they are the best and also reliable
- Crown Castle Incorporated (Inc) share price is $141.00 and the Market cap is $61.06 billion.
- EPR Properties: The share price is $42.10 while the Market Cap is $3.16 billion
- Equinix Incorporate (Inc): The share price is $732.70 while the Market cap is $67.80 billion
- Farmland Partners Inc: The share price is $12.70 while the Market Cap is $693.22 billion
- Getty Realty Corp: $34.89 share price and $1.63 billion for the market cap
- Gaming And Lesiture Properties Inc: $53.29 is the share price while the market cap is $13.72 billion
- IRM Iron Mountain: share price is $53.04 and the Market Cap is $15.42 billion
- Realty Income Corp: $66.23 share price while the Market Cap is $41.54 billion
- Simon Property Group Inc: $124.41 is the share price and $42.66 billion for Market Cap
- VICI Properties Inc:$34.48 share price and the Market Cap is $35.11 billion
Types of REITs
We have different types of Real Estate Investment Trusts (REITs), and they have different strategies for investment. Here are the types of REITs we have:
- The Healthcare REITs: This type of REIT owns and operates healthcare-related real estate like nursing homes, hospitals, and medical buildings.
- The Mortgage REITs: They invest in mortgages than physical properties
- The Office REITs: they generate income from the rent which is paid by tenants and their focus is on office buildings.
- The Residential REITs: They are companies that operate and own financial residential properties like single families houses and single apartments.
- Retail REITs: This type of REIT operate and focus on properties like shopping malls, shopping center, and other retail real estate.
In concluding this article, we now know how to invest in REITs and the best REITs to invest in, we also have talked about the types and how they work, now I do not think we have any worry about how to make our investment with the Real Estate Investment Trust (REITs). Note, they are a lot of scammers around so let us be aware of who we are making our investment with.
Thank you for reading, you can drop your inquiries and comments in the comment section I will be attending to the all.