How to easily collect passive income from real estate without buying rental assets

• Investing in Reit is an easy way to get passive income from real estate.

• Invitation Homes are owned by more than 110,000 single -family rental homes, which give investors a dividend income.

• Real estate income includes more than 15,600 commercial real estate objects that earn a very stable rental income to support its rising monthly dividends.

• 10 shares we like better than real estate income ›

Many people buy one or more leased objects to get passive income. It may be Very good Income Strategy. However, it has some disadvantages including a high pre -investment and need actively manage the property;

An even easier way to get passive income from real estate is to buy a shares Real Estate Investment Trust Fund (Reit); These entities include large portfolios of professionally controlled rents. They distribute part of cash flow to investors using dividend payments. These qualities make reities very passive investments.

Here are some of the best reities to consider buying for extremely easy passive income from real estate.

Most of the start -up real estate investors will buy one family home they will become a Lease assets; While this strategy can produce some rental revenue, it has many possible traps. For example, tenants’ concerns or repair problems can quickly turn your property from money mastery into a money pit.

Invitation House (NYSE: INVH) It is easy to invest in one family leasing properties without every possible trap. Reit owns or owns more than 110,000 houses in the top 16 housing markets. This extensive diversification helps to reduce the risk by giving the owner a more stable income to support dividend payments.

The company pays its investors $ 0.29 per quarter ($ 1.16 a year). Recently with its stock price is low $ 30, it has a Dividend yield about 3.5%. In other words, every $ 1,000 would invest in reit Dividend Income every year.

Invitation houses usually pay a little more than 70% of its cash flow in dividends. The rest retains to invest in new rental properties. Reit will buy home in the open market, buy rental real estate from other investors and buy home directly from home builders. For example, the company has recently cooperated with several home builders to buy more than $ 300 for more than $ 100 million. It also provided $ 32.7 million.

The landlord’s investment to expand their portfolio increases the rental income. This allows you to reiterate your dividends. Since the original public proposal 2017 It increased payment each year, including 3.7% last December.

When real estate investors create their own portfolios, they often diversify with commercial real estate. This strategy requires a lot of capital because buying these features is expensive. However, they can earn a very stable rental income supported by long -term lease agreements.

Real estate income (NYSE: O) It is easy to invest in commercial real estate. Reit belongs to a diversified 15,600 real estate portfolio throughout the US and Europe. It owns a single rental retail, industry, games and other qualities Net leased For many leading companies in the world (its best tenants include 7-ElevenIs it FedExand Walmart). Net lease contracts are very friendly to owners because they need tenants to pay all the cost of the property, including building insurance, real estate taxes and conventional maintenance. As a result, Reit creates a very stable cash flow.

The company pays its investors each month (currently $ 0.269 per share or $ 3.228 per year). With a share price of $ 50, real estate revenue dividends are more than 5.5%. At this rate, you raised about $ 4.60 in dividend revenue for every $ 1,000 in reities.

Real estate income also regularly increases its monthly dividend benefit. Since 1994 It has increased 131 times on the public market list, including the last 111 quarter in a row. It has increased by 4.2% of the composite annual norm in the last 30 years.

Reit should be able to constantly increase your payment. This is a payment of about 75% of stable cash flows in dividends, allowing the other 25% of investment in income -income real estate. Real estate income also has a strong balance, providing additional financial flexibility to invest in real estate. Doing that Sales lease transactions With real estate owners, operators buy portfolios from other investors and invest in development projects.

Not everyone to invest in rental assets. However, everyone can buy Reit shares to collect passive dividend income. Invitation houses and real estate income are great opportunities because they pay constantly rising dividends supported by high quality portfolios and financial profiles.

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Matt Diallo is occupied by FedEx, Invitation Homes and real estate income. Motley fools hold positions and recommend FedEx, “Invitations”, real estate income and Walmart. The Motley fool has a disclosure policy.

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