i Use M1 ( click find out more below )
The U.S. Congress established real estate investment trusts, or REITs, in 1960 to give people the opportunity to invest in income-producing real estate.
REITs are like the mutual funds of real estate. They’re a collection of properties operated by a company (aka a trust) that uses money from investors to buy and develop real estate.
They’re a fantastic choice if you want to get involved with real estate investing but don’t want to commit to purchasing or financing a property. Like with most blue-chip stocks (more on those later), REITs pay out in dividends.
REITs also focus on a variety of different industries, both domestic and international. You can invest in REITs that build apartments, business buildings, or even healthcare facilities.
(NOTE: There are some taxable implications for REITs.)
In all, they are a straightforward way to get involved with real estate without having to eat the upfront cost of buying property. To get started, go to your online broker and purchase a REIT like you would a typical investment.
One I suggest? The Vanguard REIT ETF (VNQ). This is Vanguard’s ETF fund that tracks a REIT index from MSCI Inc, a noted investment research group.