Real Estate that Should Be on Your Radar Right Now

I was a landlord once and it didn’t turn out how I expected. I think it mattered that I didn’t set out to be a landlord. I had bought a house in Baltimore City that I expected to live in for many years. Then my job relocated me to sunny Florida (who would pass that up?).

I used a family friend who was a property manager, and things were fine for a few years. I had a long-term tenant, but COVID completely turned her life upside down. When I got the property back it was completely trashed—broken windows, rats, appliances dismantled.

I was lucky though. Since I purchased in 2012 and was selling in 2021, there were investors who were more than happy to take the property off my hands. I walked away with a 5% profit.

In the end, I was grateful to escape escrow with any number greater than zero. Still, everybody knows that 5% is a terrible return for a 9-year investment. The current Yield Shark portfolio has 12 stocks marked “Buy” right now that pay over 5% in income every year.

One of those is a REIT that would have paid me a much better return than my rental property.

Different Types of REITs

I talk about REITs all the time because they are passthrough entities you can use to easily invest in real estate. They were created under a portion of the Cigar Excise Tax Extension of 1960. The intent was to give individual investors access to real estate. And they still do that to this day.

REITs are traded easily on major US exchanges and don’t require special tax forms like other passthrough investments.