Passive Income for Life - Investing & Making Money while sleeping: Part 1

We all have dreamed of leading a life where we don't have to stressed about money.

In the Next series of posts I will talk about an area/sector of Investment where a lot of people have become wealthy and they literally make money while they sleep.

Real Estate

Real Estate in United States is worth $25 Trillion and growing everyday, and the publicly available part of it is calld "REIT" and it is the 8th largest sector of S&P 1500.

What is REIT?

A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate. Modeled after mutual funds, REITs provide investors of all types regular income streams, diversification and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders. In turn, shareholders pay the income taxes on those dividends.

Theres More

REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries – through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy or finance property.

Incase you overlooked it: without actually having to go out and buy or finance property.

That is the key you can buy REITS in your 401k,IRA,Brokerage Accounts and its like buying a piece of the property/real estate.

Upcoming Part 2: Will talk about where you can buy REIT and financial benefits of buying REITS.

Thank you. Follow and comment.

Sources: https://www.reit.com/investing/reit-basics/what-reit