What Is Passive Real Estate Investing?

Passive real estate investing does not require you to manage the properties you put your capital into. One of the best ways to do passive real estate investing is to put your money in REITs. You put your money in REITs and let them garner returns for you by managing a portfolio of money-making properties.

To efficiently invest passively in real estate, it is important to know how to select the right REIT to invest into. Nonetheless, to help you with the same, here are 2 ways to identify a good REIT to invest into -

1.       Higher returns than their public counterparts

Regardless of which type of private REITs you decide to invest in, the good ones have a track record of providing higher returns when compared to their exact public counterparts. While private REITs are able to provide their investors with a minimum of 7% to 8% returns on their invested capital amount, public REITs are able to reach the bar of 5% to 6% returns on an average comparatively.

2.       Higher returns than their public counterparts

Since private REITs are not listed on the public indices, they are not affected by the fluctuations that happen in the public market and are one of the best ways to gauge the potential and strength of the real estate industry at any given point. The avalanche effect of the public markets is also easily avoided, wherein, when one of the major players of a certain industry has a falling stock price, the share price of their competitors in the same industry also starts to drop. Since private REITs are not connected to each other and their income solely depends on their own performance, the returns they provide have infrequent updates when compared to their public counterparts.

Please Read The Original Post Here: What Is Passive Real Estate Investing?

Comments

Post a Comment

Popular posts from this blog

How Can I Invest In Capital Markets?

 There are two types of markets that people can invest in private and public markets. The public market is where people buy shares of companies through brokers and platforms to invest their money. People can invest in the market either on a long-term or short-term basis. Based on their investments and the type of investment the returns may vary. The private market is a little different than a public market. Investors who raise capital for up-and-coming companies that can promise good returns are part of  Private Capital Markets . There are different requirements that you need to fulfill in order to be able to invest in this market: Platform for investment Generally speaking, investing in private markets is not open to everyone. There are specific criteria that are required to be fulfilled by the investor to be eligible for the capital market. While this all happens when you approach an investment firm that is involved in this market, there are many platforms that ...
Read more

Here Are 5 Benefits Of Investing In Private Markets

Image
Private markets give access to accredited investors to invest in various financial assets that are not listed in the public domain and typically cannot be accessed by retail investors. Private markets are very popular among accredited investors like high-net-worth individuals and various investing financial institutions, as they are extremely opportunistic and rewarding. To give you more clarity, here are 5 benefits of investing in private markets- 1) They are less volatile The evaluation of  Private Market  financial assets is not affected by the daily price fluctuations of publicly listed financial assets that belong to the same industry. This makes private markets less volatile and thus reduces the risk investors bear when acquiring private market financial assets. Private markets are typically long-term investment options, hence it is generally not recommended to acquire privatized financial assets for shorter durations. The avalanche effect seen in the public market...
Read more

How does an investor evaluate a private equity investment?

  Private equity is a completely different financial asset and serves unidentical financial goals when compared to the expectations one might have when putting their money in public corporations. I have a fair share of knowledge about this topic and I have acquired it from my study of the Singaporean markets. You too can learn in detail about this by searching ‘ private equity investment Singapore ’ on google To help you understand how an investor evaluates a private equity investment opportunity, here are 2 things that an investor looks for to make the right private equity investments to enhance their portfolio - Gauge the growth potential - Any type of corporation that wants to survive in the market for the long run, has to make sure they have multiple avenues of expansion and are not limited to only one field of operation. A few examples of growth drivers can be an improvised upselling strategy, territorial expansion, exploring new industries, or future acquisitions and mergers....
Read more