Want TRULY Passive Income? Here’s Why REITs Beat Rentals

Want TRULY Passive Income? Here’s Why REITs Beat Rentals

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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.

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Join BiggerPockets for FREE:
https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none
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Hear David on “Motley Fool Money”:
https://www.fool.com/podcasts/motley-fool-money/2022-07-17-housing-trends-w-david-greene-real
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Join the Real Estate Winners and Grow Your REIT Portfolio:
https://www.fool.com/order/557f49ed-d6d1-4a01-aa9c-708467cc5058?c=rew-aox-nm&source=iw1aoxurl0000001&apikey=5c8e52dd-1bea-455e-87f5-d5506e590f21&testId=Splitter9671&cellId=11795&pid=11795&did=5886
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Hear More of Henry on The “On The Market” Podcast:
Listen to The “On The Market” Podcast Wherever You Listen to Podcasts:
Spotify: https://open.spotify.com/show/2NlzZ9NtHtZ2uBuaDNoGzY
Apple Podcasts: https://podcasts.apple.com/us/podcast/on-the-market/id1615086704
BiggerPockets: https://www.biggerpockets.com/podcasts?utm_source=youtube&utm_medium=description&utm_campaign=none
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Invest in Real Estate Without Leaving Your Computer:
https://www.biggerpockets.com/blog/2013-02-25-reits?utm_source=youtube&utm_medium=description&utm_campaign=none
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Passive Real Estate Investments vs REITs:
https://www.biggerpockets.com/blog/2014-03-31-passive-real-estate-investments-vs-reits?utm_source=youtube&utm_medium=description&utm_campaign=none
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Data Center REITs Are On Fire—Should You Invest?
https://www.biggerpockets.com/blog/investing-data-centers?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with David and Henry on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
Henry: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow David and Henry on Instagram:
David: @davidgreene24 or https://www.instagram.com/davidgreene24/
Henry: @thehenrywashington or https://www.instagram.com/thehenrywashington/

Episode 639

Show notes at: https://www.biggerpockets.com/blog/real-estate-639?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
04:27 Quick Tip
05:25 Matt's Passive Income Portfolio
08:46 What is a REIT (Real Estate Investment Trust)?
12:32 ​​Why Buy REITs Instead of Rentals?
22:50 Undervalued Investing
26:23 What to Look For in a REIT
30:24 How Long Should You Hold REITs?
35:10 The Dangers of Day Trading
39:46 Where to Research REITs
44:14 Types of REITs Worth Buying
54:27 Other Benefits of Investing in REITs
58:44 Famous Four

#biggerpockets #realestatepodcast #ep639