455: REITs: How to Make Real Estate Money WITHOUT Owning Rentals

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 2 October 2023

⏱️ 57 minutes

🔗️ Recording | iTunes | RSS

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Summary

Want passive income? Well, DON’T invest in rental properties. Buy REITs (real estate investment trusts) instead. Yes, you read that right. Although rental properties are a phenomenal way to build wealth and cash flow and pay fewer taxes on your income, they aren’t the most “passive” type of investment around. Between the 2 AM tenant phone calls, leaky toilets, evictions, and common headaches of owning a house, rental properties might not be worth the extra incomefor most Americans. But REITs probably are. REITs are traded on the stock market just like your favorite index fund. The difference between REITs and traditional stocks? REITs let you buy a share in a large landlord company, which passes their income down to you via dividends and often an appreciating share price. And now, as many commercial real estate values are dumping, top REITs could be selling at a HUGE discount. So, how do you start investing in them? We brought Jussi Askola on to help. Jussi runs Leonberg Capital, where he consults with some of the largest REITs in the world. He also writes the “High Yield Landlord” newsletter for Seeking Alpha and is arguably the world’s most up-to-date REIT expert. In today’s episode, Jussi gives you a top-to-bottom breakdown of REIT investing, who should (and shouldn’t) invest in them, how to know whether one is worth buying, and why rentals PALE in comparison to the passive income REITs provide. In This Episode We Cover REITs vs. rental properties and why one beats the other on profit and passive income potential How to make TRULY passive income by investing in REITs today Private vs. public REITs and which are safer, easier to exit, and provide better returns The MASSIVE REIT discount in today’s stock market and which companies are worth investing in REIT industries to avoid in 2023 that may continue to see their prices drop And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Join BiggerPockets for FREE Connect with Scott on BiggerPockets Grab Scott’s Book, “Set for Life” Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Money Moment Passive Income (Without the Properties!) by Investing in REITs w/Matt Argersinger What Are REITs And How Can You Invest In Them? Click here to check the full show notes: https://www.biggerpockets.com/blog/money-455 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email us: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Bigger Pockets Money Podcast where we interview UC Escola about real estate investment trusts or REITS.
0:08.0	Hello, hello, hello, my name is Scott Trench and with me today is my MVP CFP co-host Kyle Mast.
0:16.0	Hey Scott, good to be here.
0:18.0	All right, Kyle and I are here to make financial independence less scary, less just for somebody else.
0:23.0	To introduce you to every money story and every type of real estate investment or other investment.
0:29.0	Because we truly believe that financial freedom is attainable for everyone, no matter when or where you're starting.
0:34.0	Whether you want to retire early, travel the world, go on to make big time investments in assets like real estate, or start your own business,
0:41.0	or learn about new investment opportunities will help you reach your financial goals and get money out of the way so you can just launch yourself towards your dreams.
0:48.0	Kyle, I cannot be more excited about today's episode.
0:52.0	UC is just the kind of perfect guest to talk about REITS real estate investment trusts, a publicly traded in many cases way to get exposure to real estate.
1:04.0	An asset class has been hammered over the last 18 months to the tune of like 30% across the board.
1:10.0	It just maybe presents a tremendous opportunity that we've been ignoring or overlooking here at bigger pockets.
1:16.0	And wow, is this guy pretty smart on this topic?
1:20.0	This is a must listen episode.
1:22.0	100%. This is exciting.
1:24.0	This guy knows his stuff and this is definitely a neglected topic in the real estate sector.
1:30.0	So people are going to get a lot out of this episode.
1:32.0	I'm excited for everyone to listen to this.
1:34.0	This is going to be great.
1:35.0	Alright, next up is our money moment where we share a money hack tip or trick to help you on your financial journey.
1:41.0	And today's money moment is take care of your health, drink water, take vitamins, get in some sunshine, go to that hand you'll check up, get that work out in.
1:51.0	This may not seem like a money tip but staying in good health can save tens of thousands of dollars or hundreds of thousands of dollars in the long run.
	...

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