639: Passive Income (Without the Properties!) by Investing in REITs
BiggerPockets Real Estate Podcast
BiggerPockets
4.8 • 16.5K Ratings
🗓️ 24 July 2022
⏱️ 68 minutes
🧾️ Download transcript
Summary
REITs have long been a passive income generator for many who don’t want to deal with the trash, toilets, and tenants that come with rental property investing. No 2 AM phone calls, no listings, no showings, and no sales. With REITs (real estate investment trusts) you simply click a button, buy a share in the company, and wait for your passive income (dividends) to flow into your account. Seems pretty sweet right? Matt Argersinger from The Motley Fool agrees.
Matt isn’t your typical stock investor. He’s owned multiple rental properties and has even house hacked and put in some serious sweat equity. He knows that leverage and forced appreciation are huge wealth builders in the realm of real estate, but still chooses to invest in REITs instead of rentals. Why? Matt is focused more on creating passive income—as in TRULY passive income—no tenant surprises or maintenance calls to make. Matt wants to research, invest, and let his net worth grow, all while still receiving real estate-generated cash flow.
Maybe you’re skeptical. How can passive investing be so easy? If you’re brand new to REITs, Matt does a phenomenal job at explaining what they are, how they work, which types to buy, and what you can do to get started investing today. Regardless of your knowledge of the stock market, if you like income-producing real estate, this episode is for you.
In This Episode We Cover:
What are REITs (real estate investment trusts) and how they work
Why buy REITs instead of rentals, plus the benefits of both
Cheap REITs that are becoming undervalued as the stock market crashes
Mortgage vs. equity REITs and why higher cash flow could mean higher risk
The dangers of day trading and how long investors should hold onto REITs
The key metrics any investor needs to research before investing in a REIT
And So Much More!
Links from the Show
Get Your Ticket for BPCon 2022
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
Hear David on “Motley Fool Money”
Join the Real Estate Winners and Grow Your REIT Portfolio
Invest in Real Estate Without Leaving Your Computer
Passive Real Estate Investments vs REITs
Data Center REITs Are On Fire—Should You Invest?
Connect with Matt:
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Transcript
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| 0:00.0 | This is the Bigger Pockets Podcast Show 639. |
| 0:05.0 | Reats are one of the ultimate parts of the stock market where historical performance is a good indicator of future results. |
| 0:13.5 | Even though of course we were trained to believe that that could never be the case. |
| 0:17.0 | But reats, real estate in general is such a steady business. |
| 0:21.0 | If you think about most reats, most commercial reats, they've got leases that they've signed with tenants that run, |
| 0:26.5 | not your typical rental lease, which is six months a year or maybe two years, right? |
| 0:30.5 | In the commercial world, leases run five years, seven years, ten years, even fifteen years. |
| 0:35.5 | What's up everyone? This is David Green, your host of the Bigger Pockets Real Estate Podcast. |
| 0:39.5 | And joining me today is the man himself, Henry Washington, |
| 0:42.5 | as we interview the Motley Fools Matt Argersinger. |
| 0:46.5 | We talk macroeconomics, we talk real estate investment trusts, we talk stock trading, |
| 0:51.5 | and we talk how to make it all work together. Henry, first off, how are you? And second off, what were your favorite parts of today's show? |
| 0:57.5 | I am doing very well. Thank you for asking, sir. Yeah, man. The show was great. |
| 1:02.5 | Some of my favorite parts of the show were I just liked hearing the perspective of somebody who mainly invests in the stock market, |
| 1:10.5 | but does own some traditional real estate. And so you can ask those questions that only somebody who does both would know, right? |
| 1:19.5 | What's your favorite strategy? Why one versus the other? What do you like about one versus the other? |
| 1:25.5 | And so we have a little bit of a conversation about how he enjoys both of those investment vehicles. |
| 1:31.5 | And we learn a lot about REITS. And what I really liked and what I really enjoyed was being able to hear how to start not just understanding REITS |
| 1:43.5 | but how to start researching them for yourself and what key metrics to look for when you're researching them so that if this is something you want to get into, |
| 1:51.5 | you have a starting point for understanding these things and how to research and understand what's the best one for you. |
| 1:56.5 | All right, and a quick word from today's show sponsors. |
| 2:00.5 | Over the holidays, property crimes like burglaries and package theft spike. And unfortunately, David isn't a cop anymore. |
... |
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