Is Real Estate Investment Trusts a good career path? Are you wondering if real estate investment trust (REIT) is good enough to consider as a career path? Is real estate investment trust worth the buzz? Or is it just another over-hyped investment? Can I build a solid financial foundation as a doctor by investing in real estate investment trust? Rest easy because you are not alone.
These questions have cropped up in the minds of so many others as they begin to consider the possibility of following a career path in real estate investment trust. This among so any other questions will be answered in this article to enable you to make the right decision. So let’s dive in.
Real Estate Investment Trusts are real estate companies having ownership and operating real estate properties. REITs make it possible for investors to become real estate property owners with claims to regular dividends on those properties. The management of the property is the sole responsibility of the REITs.
REIT has become a vital part of the economy of the United States of America as it has allowed a wide range of people to benefit from real estate investing with little or no knowledge.
REITs make it possible for investors to invest in real estate portfolios by buying stocks. Investors in REIT earn dividends from the proceeds the company made from investing without having to get involved directly. This makes REIT very convenient and ideal for doctors as it is a source of passive income and does not require direct physical involvement.
A REIT operates like a mutual fund as different investors pool their funds together and buy blocks of shares in real estate and are paid dividends based on the value of the shares. In the US, the law provides for the payment of 90% dividends by REIT companies to investors from the proceeds made. Individuals can therefore earn passive income from real estate, free from the hassles of getting actively involved.
The question at hand is “is Real Estate Investment Trusts a good career path?” There are many benefits attached to real estate investment funds that make it preferred over other investments. Doctors can also tap from these benefits.
There are different kinds of investment options that doctors in the USA can take advantage of but why REIT? Branching out into this investment option can be for so many reasons. Consider the ones below:
1. Dividends are guaranteed.
Not only does REIT pay high dividends, but your payout is also guaranteed and covered by US laws. REIT must pay out nothing less than 90% of total income to investors as dividends. This amount can be higher but will not go lower than 90%.
2. Makes investing in real estate hassle-free.
Instead of buying blocks of flats and going through so much paperwork before you can resell them, REIT offers you the opportunity to earn dividends by buying shares. If at any point in time you feel you do not want to continue, you can easily it off.
3. The minimum amount for investment is low.
Even if you are paying off debt or have other financial commitments, you do not need a huge amount of money to start. You can start with what you have and buy more shares as time progresses.
4. A form of passive investment.
Maybe you are considering branching into other businesses or even opening a private practice some time. With REIT, you wouldn’t have to bother about managing both businesses because it does not require you to be directly involved in any way.
5. Very Liquid.
Selling of REIT is pretty easy, unlike traditional real estate. It may take time to sell off a house, but with REIT, you can easily sell your share if you feel it isn’t the right thing for you.
Going beyond the borders of the United States of America to invest in your investment may not be a bad idea as it will help you diversify. You will also gain some level of exposure to real estate in other countries without buying properties overseas. However, your span of control over such investment is limited.
Also, because it is overseas, the law guiding the operations of REIT may be slightly different from what is obtainable in the USA. If you however decide to buy a REITs, decide on the method to apply. You may buy from the foreign exchange market or directly invest. Whichever one you choose, ensure you get your facts right before you proceed.
Real estate is a prising way to invest in the long term. You don’t have to wait to amass so much wealth before investing in real estate. REIT has simplified the process for you. You can maximize REITs as a source of passive income while gaining exposure to how the real estate market works. It is also a reliable way of diversifying your investments.
Here at PhysicianEstate, we welcome all physician entrepreneurs to learn about commercial real estate investments, rental property investments, and wealth generation. We encourage all physicians to eventually become real estate physician investors. We know a great deal about Who – What – Why – How.
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