Ways to Invest in Real Estate: REIT vs MAS
Let’s talk about two ways you can invest in real estate: through a REIT (Real Estate Investment Trust) and by investing MAS (Multifamily Apartment Syndications). They both have good and not-so-good things about them.
REIT: Real Estate Investing Trust
A REIT is like a company that owns and takes care of different real estate properties that make money, like rental buildings or shopping centers. If you buy shares in a REIT, you become a part-owner of those properties. The good thing is that you can get dividends, which are like profits from the properties, and your investment can also grow in value. The law says that REITs must pay out at least 90% of their profits to the people who own shares, so that’s cool.
Pros of investing in REITs:
– It’s easy and hands-off. You don’t have to worry much about managing the properties yourself.
– You can buy and sell shares easily because they are traded on stock exchanges.
– REITs can invest in different types of properties, giving you more options.
Cons of investing in REITs:
– The returns (profits) may not be as high as some other types of investments.
– There’s less control over the properties since professional teams manage them.
– Just like with any investment, there are risks involved, like market swings.
MAS: Multifamily Apartment Syndications
This is when a bunch of people pool their money together to buy one or more apartment buildings. They hire someone or a group of people to take care of the buildings and make decisions. As an investor, you provide money in the beginning, and in return, you get a predetermined return on your investment. This return can come from the rent collected or if the property’s value goes up.
Pros of investing in Apartment Multifamily Syndications:
– There’s potential for higher returns because you can take advantage of opportunities to improve the properties.
– You have more say in what happens with the property compared to REITs.
– You might get some tax benefits, like being able to deduct some expenses from your taxes.
Cons of investing in Apartment Multifamily Syndications:
– It requires more involvement from you as an investor. It’s not as hands-off as REITs.
– There are risks too, like vacancies, unexpected expenses, or changes in the market.
Remember, it’s essential to think about what you want from your investment, how comfortable you are with risk, and what you prefer before deciding whether to invest in a REIT or Apartment Multifamily Syndications. Also, always do your research and talk to a financial advisor or real estate professional before making any decisions.
Both options have their own advantages and disadvantages, so choose wisely! If you’re having a hard time figuring out what might be the best for you, email us at in**@ea***************.com. We are happy to find the best fit for you!
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