Real estate investment trusts (REITs) have been generating returns and passive income for investors for decades. REITs are corporations that employ a combination of their own capital and investor contributions to buy, manage and sell income property. REITs exist in both the public and private investing arenas.
While REITs have a strong history of performance, they are not automatic money makers and still carry risks for investors. That means due diligence is just as important with REITs as it is with any other investment. But that begs the question: What should investors look for when conducting due diligence on a REIT investment?
Looking under the hood at REIT assets can be challenging because there are so many numbers that...
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By Mark Gilman
Home values have not dropped the way many predicted in mid-2022, and inventory is still low in many markets. So the trend of people renting out their homes to cash in seems like a reasonable risk-reward, right? Maybe not.
As someone who has owned multiple home rental properties over the years, I discovered firsthand the perils of being a landlord. And I can’t imagine the added angst associated with renting out your principal residence. Several scenarios could play out, and few will bring you the revenue you think you’ll receive. Being a landlord is not on the long list of passive income opportunities and is anything but passive.
Start with vetting potential tenants. I’ve seen complicated sports parlays with better...