interest made from the mortgage. Most of the REITs companies are publicly listed and registered with the SEC. Their shares are not publicly listed and get traded privately. With REITs, you can only invest in an institution. After buying your shares, they select the property for you and pay the dividend after a specific time according to the institutional policies. According to REITs history, they have a steady dividend income. Their stock price has long term appreciation. Compared to other investment plans, they have a long- term history of reliability. PROS • They have been in the market for a long time, so they are more reliable than other real estate investment plans. Also, history has shown how their stock price has been appreciating for a long time • They have good management compared to other investors as it is an institution involved in managing the properties. This makes it less risky. • It’s easy to liquify your shares with REITs as your stock goes to one property, and your shares can get sold to other people in case of an emergency. • REITs don’t pay corporate tax making it easy to own through IRA and other retirement plans as long as they distribute all of their investor’s income virtually. CONS • The investment is useful if you invest through a corporate as you can’t invest as an individual. • There is no transparency as after buying your shares, you will never know the property to check on the progress. All you do is wait and hope all goes well. Depending on your preference, you can tell which plan is most suitable for you. If you have a small amount of money that you wish to invest, Real Estate crowdfunding is the way to go. If you want an invest- ment with fewer risks, REITs are the way to go. Either way, you can invest in real estate without having to buy and manage properties. •
PROS • It is easily accessible, as everything is online. Every transaction happens online; you don’t need physical contact. This means you can operate from any part of the world. • They do not limit any amount one can invest in, and you do not need corporate to invest in them. You do it individually on their online platform. • The profit in crowdfunding is more significant compared to other plans as there are less corporate involved. • The profit in crowdfunding is more significant compared to other plans as there are less corporate involved. • Their online platform helps someone to track their property progress. That way, their customers can know how their properties are doing in terms of value addition. CONS • It is easily accessible, as everything is online. Every transaction happens online; you don’t need physical contact. This means you can operate from any part of the world. • They are a new platform, and most management doesn’t have real estate investment experience as they are more into tech. This makes it easy for properties to fluctuate as one needs the expertise to run a successful business. • It’s not easy to liquify your property in case of an emergency. You have to wait until the property sells on its own. REITS Real estate investment trust (REITs) is a real estate investment plan that has been there since 1960. It allows investors to invest in real estate without buying and man- aging the property through corporates. It allows investors to buy shares from properties like apartments, hotels, retail stores, and many more. After renting and leasing those properties, they divide the profit to the shareholders’ in dividends. There are two forms of REITs, mortgage REITs and equity REITs. In equity REITs, the investors earn from the rental fees, and in mortgage REITs, the investors earn
Jacob Blackett started his real estate career in 2010. Jacob has placed over $40 million into income-producing real estate and in 2018, he founded SyndicationPro with Ameet Mehta on the basis of providing better technology solutions for fellow syndicators.
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