REITs 101: How to invest in real estate without a down payment

The video tutorial explains Real Estate Investment Trusts (REITs) as a way to invest in real estate without the need for large down payments or dealing with property management. It highlights the benefits of REITs, such as liquidity and dividends, and contrasts them with the costs and responsibilities of owning physical property. The tutorial also covers the risks associated with REITs, including market fluctuations and interest rate sensitivity. It concludes with advice on choosing between REITs and real property based on individual financial goals.

What is one of the main advantages of investing in REITs compared to buying physical property?

• More complex management responsibilities

• Higher property taxes

• Less financial stress and lower initial investment

• Higher down payment requirements

How do REITs distribute income to their shareholders?

• By reinvesting in more properties

• By reducing share prices

• Through capital gains

• In the form of dividends

What makes REITs a liquid investment?

• They require a long-term commitment

• They can be easily bought and sold on exchanges

• They are not subject to interest rate changes

• They are not affected by market fluctuations

Which factor can negatively impact the value of REITs?

• Stable real estate prices

• Decreasing interest rates

• Rising interest rates

• A booming economy

When might investing in physical property be more suitable than REITs?

• When you seek diversification

• When you want to avoid property management

• When you want to start with a small amount of capital

• When you need a place to live and can afford the down payment