A REIT is a wonderful way to get started with passive income. It stands for Real Estate Investment Trust. The name sounds fancy but in reality it’s one of the easiest methods to collect a check from these companies on a monthly basis.
REITs own and operate rental properties. These could be anything from a single family home to a large commercial building for businesses. Some of my favorite REITs to hunt down deal primarily with business which have dealings with the medical world. Companies that have shown consistent Sloth-like growth are the low hanging fruit folks and any of you can own them. Let’s face it, people will always need a place to live. Those people will more than likely visit a medical facility throughout their time here and unless you’re a vampire or Captain Jack Harkness you’re gonna die. REITs will also help your portfolio form a strong base should the country fall into a recession.
Below is a nice list I stole from Forbes.com. Remember to do your own due diligence and only buy businesses you understand.
- VTR Ventas, Inc. Healthcare, mainly in North America and the UK.
- KIM Kimco Realty. Shopping center REIT. I would advise caution with malls or shopping centers due to commerce largely shifting to online marketplaces.
- WPC W.P. Carey. Leased properties.
- SKT Tanger Outlets. Nice REIT, again shopping centers involve some down the road risk.
- ACC American Campus. Largest owner of student housing. And we all know the cost to students only goes up.
- PSA Public Storage. As people buy more and more shit they don’t need they’ll need offsite boxes to store them in.
- DOC Physicians Realty Trust. Medical properties leased out to the medical sector.
- STAG Stag Industrial. Large industrial properties.
- SPG Simon Property Group. Shopping and entertainment focused destinations.
- CONE CyrusOne. Data centers. Was not aware of this one. Will do some more research and see about adding it to the portfolio.