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August 18th, 2023

The New American Dream: Investing in Real Estate


Understanding The Recipe For Long-term Asset Growth

Ordinary people are ready for real estate. No longer held back by the laws and regulations that historically reserved real estate deals for the already wealthy. Everyone now has access to and opportunities to invest in the real estate market.  

But as a first-time investor, it can be overwhelming to know where to start. Many Americans are looking to REITs to begin their investment journey. A REIT or Real Estate Investment Trust owns, operates, or finances income-generating real estate and allows individual investors to earn dividends without the hassle of having to buy, manage, or finance any properties themselves.

With time as the most valuable currency, REITs allow individuals to live the mantra, “Be an Investor, not a landlord.” Allowing everyday people to participate without the worry and work involved that owning a property can entail.

A REIT can best be described as a real estate soup and all the properties within the ingredients that make the dish shine. Investors get to sit back and enjoy this delicious dish while the managers of the REIT are hard at work in the kitchen.  

The hardest part may be deciding which type of REIT you are hungry for. And there are many options. Whether you have a craving for Multifamily, Industrial, Hospitality, Office, or Retail, there is a REIT ready to serve you.

Many REITs are now even more accessible by welcoming all investors regardless of income. Unaccredited investors are finally being given a seat at the table and can invest with as little as $1,000 in some REITs.  

Multifamily REITs remain a popular choice on the menu, with both economic and demographic advantages. Multifamily housing continues to be more affordable than purchasing a home while single-family home prices and mortgage rates remain elevated.

Millennials, the nation’s largest generation, and Gen Z not far behind, overwhelmingly prefer apartment living. They are reimagining what the American Dream means for them. They are prioritizing quality of life and experiences and want the flexibility, amenities, and affordability multifamily housing provides.  

REITs boast many benefits; not only are they required by law to distribute at least 90% of income earned from the operating cash flow directly back to investors resulting in an immediate return, but they also offer long-term growth as the properties in the REIT appreciate in value. Scratching that immediate gratification itch, while also realizing long-term financial goals. It can feel like a REIT vs. Right Now mentality.

It is important to understand that investing in a REIT is designed to be a long-term commitment, and letting your investment simmer and stew is, for many, where the largest benefit is found.  

As new investors identify the type of REIT, they are interested in, selecting an investment company can feel equally daunting. It’s important to look for a firm you trust, as it is no easy feat to hand over hard-earned money while accepting the risks accompanying all investments.

New investors can look to a firm’s experience and track record. Are they communicative and transparent? Do they understand and support their investor’s financial goals? Look for a company that wants to partner in helping everyone build their wealth.  

About the author

Heather Andrews

Heather Andrews
[email protected]