The stock market offers excellent returns when the market is favourable. However, this market is subject to many shifts and downturns, as we’ve witnessed in the past. It’s also less liquid as you hold stocks in companies as opposed to actual equity.
REITs offer a more stable alternative to the stock market. They provide constant returns even when they experience slow growth and lower interest rates. As the world market shifts, people will still depend on brick and mortar for shelter, and that’s what REITs allow you to invest. Here is how to invest in REITs:
You’ll need to be part of a private investment network since such REITs are limited to accredited members. Joining such investment networks is beneficial since you can access additional funds to secure investments.
This is also ideal since REITs required a significantly higher minimum investment when compared to the stock market. Such networks also connect you to a class better connected and experienced investors. These investors can guide you to suitable investment opportunities.
The public market grants you access to publicly-traded REITs much in the same way the stock market works. This marker is more flexible when compared to the private market. Purchases can be made through accredited brokers because such REITs are publicly listed on various exchanges.
However, publicly-traded REITs are pegged to the same constraints as stocks and other publicly traded commodities. This makes building a diverse portfolio challenging.
New Investment Platforms
The past decade has seen a significant rise in online investment platforms. These platforms eliminate the constraints and regulations that limited private and publicly traded REITs. Online platforms also caused a shift in legislation.
This lowered such barriers and ensured that REITs are accessible to all classes of investors. REITs offered by such platforms require investments that are below five figures. It may sound like a drawback, but it represents a suitable way to build a diverse platform.