REITs and how to invest: Guide for beginners

If you're thinking of investing your money, you've probably heard about investing in REITs. In this simple guide, we'll explain the basics of how can you start investing in REITs.

WHAT ARE REITS?

REITs are investments that provide the opportunity to invest in real estate assets without directly owning the property, for example, you can receive part of the rent from a property if you own a share in this investment.

HOW DO REITS WORK?

REITs are required by law to follow a series of specific rules in order to maintain their tax exemption. One of the most important rules is that they must distribute at least 90% of their taxable income to shareholders in the form of dividends, just as you would receive rent if you owned the property. This makes REITs a popular choice for investors looking for passive income.

Investors can buy REITs in the same way they buy shares in companies. These REITs are traded on stock exchanges, which provides liquidity and ease of trading. In addition, REITs tend to pay regular dividends, offering investors a consistent source of income.

WHY INVEST IN REITS?

Investing in REITs can be an effective way of making your money grow over time. Here are some reasons why people invest in REITs:

• Real estate diversification: REITs offer exposure to a wide range of properties, making it possible to diversify risks.
• Passive Income: Regular dividends from REITs can provide a reliable source of passive income.
• Liquidity: REITs are traded on stock exchanges, offering easy buying and selling.

HOW DO YOU BUY REITS?

Now it's time to understand how to buy REITs. Follow the step-by-step below:

1. CHOOSE A BROKER

The first step is to choose a reliable stock broker. A broker is a company that allows you to buy and sell shares on the market. Make sure you choose a broker that offers an easy-to-use trading platform and competitive rates.

2. OPEN AN ACCOUNT

After choosing a broker, you will need to open an investment account. This involves providing personal and financial information. Once you have opened the account, you can transfer money into it.

3. RESEARCH AND CHOOSE REITS

It's important to do your research. Analyze the companies you are interested in, examine their financial reports and consider their investment plans.

We present REITs from different parts of the world, where you can analyze the detailed performance of each one. Check out the list below:

• United States - Real State Funds
• Brazil - Real State Funds

4. PLACE YOUR ORDER

Once you have chosen the REITs you want to buy, place an order via the broker's trading platform. You can choose between different types of orders, such as market orders (buying immediately at the current price) or limit orders (buying at a specific price).

5. MONITOR YOUR INVESTMENTS

After buying the REITs, it's important to monitor your investments regularly. Market conditions can change, and it's essential to be aware of how your REITs are performing.

CONCLUSION

Investing in REITs can be an exciting and potentially lucrative way to make your money grow. However, it's important to remember that shares also involve risks, and prices can fluctuate. It is therefore advisable to learn more about the REITs market, diversify your portfolio and invest for the long term.

If you are a beginner, consider seeking guidance from a financial advisor or educating yourself more about REITs investments before you start. With the right knowledge and the right approach, REITs can become a valuable part of your investment strategy.

Remember that investing is a journey, and patience and education are essential to achieving long-term success.