What’s the Easiest Way to Invest in Real Estate?

A friend of mine recently asked me about investing in a REIT, which is a Real Estate Investment Trust. There’s been a lot of them poppin’ up over the last 15 to 20 years – especially online. This particular one that she was looking at had $1,000 minimum. My friend asked, “I don’t have the $1,000 now, but if I did is this a good idea?” The online REIT that she’s looking at is so super-hipster right now too (because my friend who asked is also a hipster).

“I’m investing in my online REIT through this typewriter.”

The site talks about crowd-sourcing and how you can become a real estate mogul just like everyone else! It’s real sexy, amazing, gnarly, yadda yadda yadda.

A lot of REITs invest in commercial real estate, like apartments, office buildings, retail buildings, and it makes money from the rental fees that they charge the tenants that use those properties. It delivers those monies to the investors in the form of dividends.

The Good News: Well-managed REITs tend to be good investments and a lot of them have performed really well compared to stocks.

The Bad News: Like stocks, there are no guarantee of dividends or return on investment, so there’s definitely some risk involved. If the REITs make money, you make money! Woohoo! If the REITs lose money, you lose money as well. Boo!

If you want to invest $1,000 in an REIT, it’s not the worst idea on the planet – but is it the best option?

There are a lot of down payment assistance programs out there that help a person with decent credit and $1,000 in their pocket to buy a house. Right now, prices are pretty decent, appreciation rates are pretty decent and interest rates, WHOA! Interest rates are at historic lows. So that makes this whole thing, like a super no-brainer.

Don’t believe me?

“Is it pronounced ‘reet’? Asking for a friend.” -Hipster Friend

Well, here’s how investing in an REIT works: Let’s just say you took that $1,000 down payment for a house, and invested it in that sexy REIT instead. In 5 years, that $1,000 turns into a magical $1,645! Cha-ching!

Now, on the flip side, let’s just say instead of investing in that REIT, you bought yourself a town home with that $1,000. If you hang onto that town home for 5 years (and ditch the REIT), you’re looking at a profit of over $11,000! Double cha-ching!

Why do you earn so much more money on the town home? Because, my friend, you’re earning the appreciation rate on the ENTIRE town home, the $140,000 – $150,000 town home. Plus, it’s called leverage and it’s AWESOME.

In a nutshell, by investing first in your home, you’re leveraging money that you’re already spending anyway in an investment that has proven to provide more long-term wealth to Americans than any other investment out there. So, hey, if you want to take that $1,000 and invest in that sexy REIT, good luck. But if you want to take that $1,000 and REALLY do some investing, well, you know where to find me.

Make it a great day!

Kristin LaVanway
480-282-7464
kristin@hereinphoenix.com

 

Displaying 1 - 15 of 23 results.
Sort by:
Show Map

2300 W Vineyard Road Tempe 85282, Knoell Gardens Amd

$230,000
Bedrooms: 3
Baths: 2
Sqft: 1,358
MLS: #6037912
Broker: My Home Group Real Estate
MLS Logo
ARMLS Logo

311 W Laguna Drive Tempe 85282, Laguna Estates Replat

$264,900
Bedrooms: 3
Baths: 1.75
Sqft: 1,352
MLS: #6039692
Broker: Superlative Realty
MLS Logo
ARMLS Logo

210 S Dakota Street Chandler 85225, Chandler Block I Mcr 9-2

$169,000
Bedrooms: 2
Baths: 1
Sqft: 744
MLS: #6039860
Broker: Keller Williams Integrity First
MLS Logo
ARMLS Logo

5104 S Stanley Place Tempe 85282, Park Premiere Townhouses 1

$205,000
Bedrooms: 3
Baths: 2.5
Sqft: 1,452
MLS: #6039754
Broker: Berkshire Hathaway HomeServices Arizona Properties
MLS Logo
ARMLS Logo

232 S Horne -- Mesa 85204, NO Hoa

$147,900
Bedrooms: 3
Baths: 1
Sqft: 848
MLS: #6034635
Broker: HomeSmart
MLS Logo
ARMLS Logo

108 N 88th Place Mesa 85207, EL Cortez Mobile Home Ranchos 2

$62,000
Bedrooms: 3
Baths: 2
Sqft: 1,100
MLS: #6017736
Broker: American Allstar Realty
MLS Logo
ARMLS Logo

1813 W 3rd Place Mesa 85201, Evans Park

$180,000
Bedrooms: 3
Baths: 1
Sqft: 1,050
MLS: #6038976
Broker: Waldenwest Realty
MLS Logo
ARMLS Logo

830 S Dobson Road 37 Mesa 85202, Skyview Mesa Unit One Amended

$129,999
Bedrooms: 2
Baths: 1
Sqft: 784
MLS: #6038824
Broker: Desert Fairways Realty, LLC
MLS Logo
ARMLS Logo

151 E Broadway Road 301 Tempe 85282, Broadway Terrace

$139,900
Bedrooms: 1
Baths: 1
Sqft: 775
MLS: #6028375
Broker: Rachael Richards Realty
MLS Logo
ARMLS Logo

457 S Grand -- Mesa 85210, Stewart Add TO Mesa Ext

$119,000
Bedrooms: 3
Baths: 1
Sqft: 1,428
MLS: #6036182
Broker: Gentry Real Estate
MLS Logo
ARMLS Logo

6036 W Sun Dance Drive Queen Creek 85142, Santan Ranches Unit 3

$299,995
Bedrooms: 2
Baths: 2
Sqft: 1,465
MLS: #6005662
Broker: HomeSmart
MLS Logo
ARMLS Logo

1162 W Tulane Drive Tempe 85283, Wood Park Village Lot 1-314 & TR A-C

$219,900
Bedrooms: 3
Baths: 2
Sqft: 1,172
MLS: #6036837
Broker: Tierra Bella Realty
MLS Logo
ARMLS Logo

2149 N Higley Road Mesa 85215, Apache Wells Mobile Park 4A

$159,900
Bedrooms: 3
Baths: 2
Sqft: 1,537
MLS: #6037792
Broker: Long Realty Partners
MLS Logo
ARMLS Logo

1507 E Dunbar Drive Tempe 85282, Park Riviera South 2 Townhouses

$221,700
Bedrooms: 2
Baths: 2
Sqft: 1,320
MLS: #6026349
Broker: HomeSmart Lifestyles
MLS Logo
ARMLS Logo

2220 W Fremont Drive Tempe 85282, Knoell Garden Villas 1 Amd

$150,000
Bedrooms: 2
Baths: 1
Sqft: 928
MLS: #6037903
Broker: My Home Group Real Estate
MLS Logo
ARMLS Logo
Copyright 2020 Arizona Regional Multiple Listing Service, Inc. All rights reserved.

All information should be verified by the recipient and none is guaranteed as accurate by ARMLS.

IDX Solution Provided by iFoundAgent.com

ARMLS Listing Data last updated 2/21/2020 6:37 PM MST.