In this episode of Uncontested Investing, Suzanne and I kick off a new mini-series on alternative funding sources by breaking down one of the most common, and most misunderstood, tools out there: Real Estate Investment Trusts, or REITs. We walk through what a REIT actually is, why they exploded after the 2008 mortgage crisis, and how they’ve shaped the single-family rental space over the last decade.
We cover the different types of REITs (equity, mortgage, and hybrid), the difference between public, non-traded, and private REITs, and what that means for access, liquidity, and risk depending on where you are in your investing journey. We also dig into the real advantages for real estate investors: consistent dividend income, daily liquidity compared to traditional property sales, built-in diversification across markets and asset classes, professional management, and powerful tax treatment — including holding REITs inside IRAs and 401(k)s.
If you’ve been curious how REITs fit into a real estate investor’s portfolio (instead of just a Wall Street portfolio), this Part 1 episode will give you a clear framework to decide if they belong in your strategy.
Quotables
“A company that owns, operates or finances income producing real estate, they’re required to distribute at least 90% of the taxable income to their investors or their shareholders.”
“Well, the publicly traded REIT’s probably going to give you the ease of entry in that. That’s like buying a stock. No different than that.”
“It’s a great way for you to enter a different way of investing in real estate.”
Links
RCN Capital
https://www.rcncapital.com/podcast
REI INK
