What many don’t know is that it is easy to invest in real estate through REITs. However, should they invest in REITs? Is it safe? What’s the difference between REITs and buying properties on your own?
“Real estate can bring massive wealth into your life if you know what you’re doing”, says Sunil Tulsiani.
Although Sunil does not invest in REITs, some of his students find them to be a great source of passive income. The trick is to find the best professionals and do your own due diligence on the company, the managers and the team.
The idea is that you hand over your money to a professional who knows how to invest in real estate. Some investors find this a good way to diversify as the funds are usually invested in various different real estate projects and at the same time, they don’t have to spend too much of their time overseeing day to day work.
REITs – way to invest in big or small projects
The process of investing in REITs is like investing in mutual funds. You don’t need to own a physical building before you can invest. Many firms have commercial or residential properties that they invite investors to invest in. Once an investor is interested, he can invest online and possibly receive passive income. This is ideal for those who don’t have a lot of time to learn or oversee their real estate portfolio.
Is it good to invest in REITs?
Yes and no.
Investing in REITs can be good because you’ve done your due diligence on the professionals / managers who have the experience, the knowledge and connections to invest and run the fund. Basically, it becomes passive for you and you don’t have to worry about the tenants, the fix ups and on-going decision-making.
REITs can be a not-so-good investment for the same reasons why they are; as investors give their power to invest to someone else. They also do not have any power to select their properties, to make any ongoing decisions to improve the properties and they pay a fee to a manager whether their real estate portfolio makes any profits or not.
Anyone considering REITs should carefully select the leaders/managers who have a strong track record and a good team.
Invest in REITs or Do it on your own?
If you don’t have a lot of time or don’t want to do a lot of hard work, REITs may be the way for you. Basically, you’re hiring someone else to invest your money in real estate and you’re not able to take advantage of the leverage factor or some income tax benefits.
However, “The best way to build massive wealth is to own your own properties that produce positive cash flow”, Says Sunil Tulsiani.
But, this requires, more due diligence, being active, battling some of the issues that are may arise, i.e., tenants issues or damage to the property and being in charge of your financial destination. This is hard work.
Bottom line, REITs can be good for people who don’t have a lot of time and don’t have lot of expertise (or don’t want to learn about investing in real estate). Investing in rental properties on your own is for active people who want to earn more, get better tax benefits and be in charge of their financial freedom.
About Sunil Tulsiani
Sunil Tulsiani is a former Canadian police officer, #1 best-selling author and the founder of Private Investment Club. He has trained alongside of Tony Robbins, Robert Kiyosaki, Grant Cardone, Robin Sharma, Deepak Chopra, Brian Tracy and many more.
To connect with Sunil Tulsiani, go to: www.PrivateInvestmentClub.com or connect with him on social media.
Lastly, Sunil Tulsiani, an executive of the Private Investment Club, encourages people to invest in real estate now. He further stated that the real estate market is a lucrative one for those who know the rules. To invest in lucrative properties, you need to inject cash and be patient because money brings more money. So if you do it the right way, you will make money.
Today, Sunil is a multi-millionaire investor who aims to help others attain financial freedom through his membership and mentorship programs. Members of the club include Jack Canfield of chicken soup for the soul, Robert G. Allen New York Times best-selling author, Brian Tracy and Kevin from Shark Tank!
Sunil not only spearheads PIC but is an international speaker, best-selling author, business coach, mentor, public speaker and an expert real estate investor. He has shared stages with the likes of Tony Robbins, Robin Sharma, Robert Kiyosaki, Grant Cardone, and Les Brown amongst others. He has been featured on Forbes, USA Today, The Toronto Star, CNBC, Times of India, and Fox Business News and has been profiled on Breakfast Television (CP24). Sunil’s goal is to make 100 millionaires / multi-millionaires through his elite club and mentoring.