Posts

man-5723449_1280

Is REIT a good option for earning passive income?

Image by Tumisu from Pixabay

By Phil Bradford

The year 2020 has made us realize that you need an extra income avenue to sustain yourself. Apart from your regular income, if you can earn passively, then you will be one step ahead to make yourself financially stable.

business-4636683_1280

Image by Gerd Altmann from Pixabay

When you are thinking about passive earning, REIT (Real Estate Investment Trust) is a good way to earn passive income and you can trust it.

Real Estate Investment Trust or REIT manages commercial real estate properties. The REITs are publicly or privately traded companies and with the money taken from the investors as an investment, they run the commercial real estate properties.

The benefit of investing in REIT is they are designated to pay 90% of their taxable income to the investors and the 90% return signifies the dividend is higher than other stock investments.

Now, you can take a look that REITs invest in what kind of property

REITs are attractive for the investors because the investors don’t have to take any burden like buying any property directly. REITs are dividend-generating passive income avenues where investors do not have any tension of buying any property.

Have a look at REITs usually hold what kind of properties:

  • Office buildings.
  • Retail buildings such as shopping malls.
  • Hotels and resorts.
  • Healthcare facilities.
  • Apartment complexes.
  • Warehouses.

skyscraper-3184798_1280

Image by Jason Goh from Pixabay

You can depend on REITs to earn passive income if it has a good management team and if there are some good properties in its hold. Then you can relax and watch the growth of your investment.

The 11 points that describe REITs is an ideal passive earning avenue

The REIT works in the same way as the stock market or the mutual fund. You will receive dividends from the company and make a profit from REIT stocks when you will sell them.

  1. The high dividend returns are the special feature of the REITs. No other investment can provide you such a high return.
  2. The upfront fee of REIT is not very much.
  3. For a newbie investor, REIT is the easiest way of starting an investment. You have to only use a brokerage account to buy REIT stocks.
  4. The investment range of REIT is comparatively lower than other investments if you make a comparison. The investment range of REIT runs from $100 to it can stretch upto several thousand dollars. REITs are an easy way to build your wealth.
  5. REITs are usually liquid investments. You will be able to buy and sell the REITs in the open market.
  6. The dividends you will earn from REIT can be increased from time to time when the asset value of REIT’s properties will increase gradually.
  7. Investing in REITs is a good option to diversify your portfolio and it can help you to reduce the volatility of your portfolio.
  8. REITs are the best alternative for those people especially the retired persons and the newbie investors who do not have adequate capital to buy and manage their property.
  9. The real estate market is usually dominated by larger corporations but REIT is giving the chance to small investors to invest in commercial real estate. Generally, REIT is the collective trust among the multiple investors that non-accredited investors can invest with minimal dollars.
  10. This long-term investment in REIT is profitable for its liquidity.
  11. Indeed, the historical performance never guarantees the future performance of REIT. Though REIT data reveals from 1977, it has earned 12% on average annually.

One important point to remember is that your income from REIT will never be taxed by the IRS as passive income. Rather the earning from REIT is considered as portfolio income and they will be taxed based on the capital gain tax rate.

Can you depend on REIT amid this uncertain time?

pocket-watch-1637396_1280

Image by anncapictures from Pixabay

In this devastating 2020, where everything is uncertain, people are almost dependent on stimulus packages, the question will come to mind that is it a good time actually to invest in REITs?

Well, financial experts are saying that if you have money in hand now then the better option for you is to invest in REITs than the stock market.

With REITs, your investment will grow in less-volatile conditions and in a stable and balanced way. It is only REIT investment that is providing you an opportunity like you can deduct up to $3000 from your taxable income if you suffer any loss.

But REIT experts are saying that you can avoid three types of REIT investment now and they are the hotel, hospitality, and retail. The hotel and hospitality business is in its bottom level currently due to tour and travel is at its lowest strata.

The same thing happened with the retail stores. Due to lockdown, nearly all the retail stores are closed so retail REITs are not much profitable now.

So, if you keep these points in mind even in this uncertain time, you can depend on REITs to earn passive income.

Can you depend on REITs during an emergency?

doctor-1015624_1280

Image by Peggy und Marco Lachmann-Anke from Pixabay

Average Americans tend to use the ‘quick-money-way’ for fulfilling any emergency. For Americans, quick-money means either high-interest credit card loan or a payday loan. But both are not good for your financial health. The minimum interest rate of a payday loan is 391%. For a small loan amount, you have to pay off a ballooning interest rate.

Rather than this option, during any emergency, if you sell your REIT stock, you can get a lump sum amount most safely.

However, if you are already entrapped in payday loans then you can choose the consolidate payday loans option for now. Eventually, REIT is more dependable to you as an option to get out of any financial emergency.

Final words,

After reading the article, you may have understood that to earn passive income and for your emergency-money-requirement, there is no substitute for REITs. To invest in REITs means you will gain some tax advantages. Due to the reason of avoiding corporate tax, REITs distribute 90% of their income to the shareholders. The net result of this is higher earnings for REITs investors.

In brief, if you want to earn a passive income without taking much hassle or risk, you can depend on REITs. That is why REITs are the dependable income avenue for you even for your after-retirement-phase or if you are a rookie investor.


Phil Bradford

Phil Bradford

Phil Bradford is a financial content writer and an enthusiast. He has expert knowledge about personal finance issues and he is a regular contributor of Debt Consolidation Care. His passion for helping people who are stuck in financial problems has earned him recognition and honor in the industry. Besides writing, he loves to travel and read books.

sun

TERICA KINDRED: This Girl is ON FIRE!

By Karen A. Walker

For Terica Kindred it’s not about real estate. It’s not even about money.  For her, it’s all about freedom. Real freedom—the kind you can own…. and share.

Girl On Fire

She bought her first property, a four-plex, at age 20. By age 23, Terica Kindred owned 10 rental properties. By 24 she was a millionaire.

But it wasn’t smooth sailing from there.

At age 30, Terica lost 1.2 million, thanks to what she pithily refers to as “big drama.” Misplaced trust in a construction manager whom she realized, too late, was over his head in his responsibilities, triggered a serious loss of her own funds.

Yes, that was devastating.

But, ultimately, no worries. She’s got this. Terica has a broad view of living, and it includes ongoing learning, serving, growing and always improving.

For Terica, when you hit the wall, it’s a learning opportunity. Dust off your feet, learn from your mistakes, head in a new direction, and move on.

In a nutshell, Terica and Nike share the same motto: JUST DO IT.

Start

Born and raised in south central Los Angeles, Terica earned a computer science degree from the University of California, Irvine.

Entrepreneurial to the core, while in college she and more than 20 student colleagues developed an early computer game for mobile phones. They were going gangbusters, things were starting to take off and eventually the project needed Venture Capital (VC) funds to grow. It was an exhilarating journey… and then, suddenly, it died.  VC funders at the time just couldn’t imagine anyone playing games on their mobile phones. Yes, really!

The short-sightedness of deep-pocket investors was a significant learning moment for Terica. Lack of funding was a limitation.  Depending on someone else for funding could destabilize the trajectory of a project, or even of a life, her life.

 No Limits

Terica wanted no part of funding limitations in the future, so when the opportunity to work for Deloitte in Orange County, California, opened up, she took it. It was a good company and a good job in the field of tech solutions. But her dream was bigger than any corporation could hold.

That’s when real estate became a passion.

“I’m a landlord’s daughter,” says Kindred when asked what sparked her interest in real estate.

“I love freedom, and real estate was an easy way to get that. I quit my job before I turned 30 and earned enough residual income to cover my life using real estate. I love that!”

Although she grew up around real estate, she admits her father has a different approach from hers.  She focuses on flipping, and she’s become an expert at thoroughly having done and understanding every aspect of the business, including construction, managing costs and delivering what buyers want. Her father sighs. As she explains, “my father is a buy and hold guy. He thinks what I do is crazy!”

Most people, however, wouldn’t agree with her father. Instead, they might say she’s a positive force to be respected. No stopping her. Full steam ahead, getting wiser and better every day.

Her mother would agree on this last point, calling her daughter “unstoppable” and even becoming her first investor, with ongoing investing as she sees fit. The pursuit of freedom, it seems, is contagious.

Proof is in results

Terica’s acquired-by-doing expertise in identifying and flipping properties in more affordable locations than her native California, has paid off.  Big Time.

She first focused on building a strong passive income to replace and exceed her corporate income.  Flipping properties prudentially enabled her to cull profits to purchase rental properties that paid a monthly, residual income and provided significant tax breaks.

Terica also employed her computer science and internet marketing savvy to grow her business in ways most real estate entrepreneurs never consider, let alone master.

Moonlighting in real estate while holding down a steady job, Kindred was able to quit her job as soon as she was earning more in passive real estate income than in her corporate paycheck. It’s a strategy she advises to others.

No slowing down

In 2010 she relocated to Atlanta and hasn’t looked back since. Nor has she slowed down.

Amid increasing real estate deals and new ventures, Terica managed to convince her then-boyfriend, Jasen, who had lost his job at the time, to stop looking for a new job and to instead join her on the freedom path. He was stunned…at first. Then he took a deeper look and decided to test it out.

Turned out, Jasen liked the adventure and the profitable results. He became an integral part of the business, and of Terica’s life. They were married more than a year ago and welcomed their first child the end of last year.  Talk about adventures!

Full Circle, Giving Back

Now less than 10 years after quitting her corporate job, Terica’s third book, My Freedom Blueprint, is hot off the press.  She considers the book, and her system, a gift she’d like to share with others.

Not surprisingly, Terica penned the book while pregnant. For her it was fairly easy writing since she continues to follow and live what she advises to others.

MyFreedomBlueprint.com conveys the gist of Terica’s real estate investing strategy and options.  It includes strategies for buying, fixing and flipping properties, investing in high-yield, low-taxed income properties, lending funds to other investors for double-digit returns, wholesaling properties for quick cash and much more.

None of it evokes cheesy gimmicks or impossible promises.  Quite the opposite.

Terica’s newest venture – My Freedom Blueprint – aims to build a mutually profitable community of vetted, trusted investors who can and will help each other achieve their own freedom dreams.

For Terica, ultimately, it’s still all about freedom!

To learn more or to reach Terica, go to MyFreedomBlueprint.com.

 


Karen A. Walker is a seasoned, award-nominated journalist with a passion for real estate.

umbrella-2904775_1920

The 3 Things Investors Need Most in 2019

By Fuquan Bilal

Do you have the three things you need most out of your investing for this year and beyond?

Many are finding it hard to make sense of the market right now. The media headlines proclaim the economy is awesome and supercharged with growth and low unemployment. Yet, the hard data and other signals suggest there are some corrections in the works. The bottom line though, is that you need these three things to get you through.

1. Passive Income

Time is the most precious and scarce resource we have. The only way to really get more time is with passive income. We can only become so productive. Then it is up to passive investments to make money so we can spend more time on other things. That’s true whether you are already making millions a year, or are in a high paying career, but are still trading your time for a wage. This is going to be even more critical over the next couple of years. And it doesn’t matter whether or not you own rentals right now, or you think your company is well insulated from a recession. If you’re not getting truly passive income, then it may be time to consider a fund or other vehicle.

2. Downside Protection

Who knows, we may really be in the best economy ever, and real estate prices, stock values and incomes might just keep going up. Of course, the odds are that there is some type of temporary correction in the works. That means it’s just smart to have some tangible, underlying hard assets and to be overcollateralized in order to protect wealth and capital during the months and years ahead.

3. Stable Performance

No single asset is going to perfectly and consistently perform the same forever. And it’s those fluctuations that are really tricky and usually come at the worst times. By diversifying and harnessing great management, we can keep our total portfolio performance steady, and yet without being so over-conservative that we end up with negative yields.

We believe we’ve achieved all this, and the ability to future proof your portfolio through our hybrid fund. Check out how we’re doing it today…

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund