REITs, A Way to Invest in Real Estate Without Holding Properties: Part 1

As you know, at HGCC we believe that investing in real estate is a safe way to make a long-term investment. This market typically carries profitable returns and allows you to diversify your portfolio if you’ve already invested in stocks and bonds.

However, investing in traditional real estate isn’t like trading regular financial products. Owning a property means you’ll have to pay taxes, cover maintenance costs, manage it, and put in many hours as a landlord. Besides, real estate isn’t liquid and carries some risks, since so much money is likely tied up in your property.

What if you could reduce your exposure to risks and invest in real estate without having to hold or manage a property? The good news is you can! Invest in a Real Estate Investment Trust (REIT). If you’re new to real estate and aren’t sure how to find good investment properties, shares of an REIT are your best option.

How Does an REIT Work?

A Real Estate Investment Trust, or REIT, is a fund that purchases properties. The company that manages the fund takes care of maintaining the properties, managing, and renting them. A portion of the revenues is then distributed to shareholders who invested in the fund.

Most REITs specialize in one market. These funds give you the possibility to invest in one type of real estate such as industrial properties or office buildings or to buy shares of a residential project.

We’ve got more info for you on REITs coming up, but in the meantime, feel free to consider the options we offer accredited investors at HGCC!