Investing in Real Estate without Buying Property — Mindset Theory
When it comes to earning a passive income, real estate is one of the best options out there. And Realty Income Corp (NYSE:O) is one of the best real estate investment trusts (REITs) for generating a reliable monthly income. In this article, we’ll take a look at why Realty Income is such a strong company and why it could be a better buy than buying physical real estate. We’ll also discuss the perks of investing in Realty Income over owning physical properties and how the company has been able to achieve 621 consecutive monthly dividends paid and 98 consecutive quarterly dividend increases.
Realty Income is a REIT that owns and operates commercial properties across the United States. The company leases these properties to tenants on long-term, net lease agreements. This means that Realty Income collects rent payments each month from its tenants, which it then uses to pay dividends to shareholders. Because Realty Income’s dividend payments are largely dependent on its rental income, the company is considered a high-quality REIT with a strong track record of performance.
Here are three reasons why investing in Realty Income could be a better option than buying physical real estate:
Down Payment
Homeownership has long been considered a key part of the American Dream, but for many people, the high cost of a down payment can be a major barrier to entry. According to a recent study, the average down payment on a home purchase was just over $50,000. For many people, this is simply not an achievable goal. Meanwhile, Realty Income Corp (NYSE:O) is only $66 a share at the time of this blog post, and for every share you buy, you will receive a dividend.
Maintenance & Cost
Any potential homeowner must be prepared to face a variety of expenses, from the mortgage and insurance to the cost of repairs and upkeep. And while some of these costs may be sporadic or one-time charges, others — like monthly maintenance fees — are recurring expenses that can quickly add up. Whether you’re managing a rental property or simply keeping up your own home. Owning shares of Realty Income Corp. requires no more work than clicking the buy button on your smartphone or computer.
No Cash Flow
One of the biggest risks when buying a property is the possibility of having no cash flow from the property. This can happen if the property is not rented out or if the rental income is not enough to cover the mortgage payments. If this happens, the buyer will be responsible for making the mortgage payments each month, even if there are no funds coming in from the property. This can quickly become a financial burden and put the buyer in a difficult financial situation. Therefore, it is important to carefully consider all of the risks before purchasing a property, to make sure that you will be able to afford the mortgage payments each month.
A big reason to consider Realty Income over physical real estate is the company’s strong track record. Realty Income has paid out consecutive monthly dividends for over 20 years and has increased its dividend payments for 98 consecutive quarters. This consistency is something that you don’t often see with physical real estate, which can be a very volatile investment.
Realty Income Corp.
Another reason to consider Realty Income is the company’s diversification. Realty Income owns over 6000 commercial properties across the United States, which reduces its exposure to any one particular market. This diversification provides stability and helps to protect shareholders from downside risk.
Realty Income Corp.
Lastly, Realty Income offers investors some unique tax benefits that you don’t get from owning physical real estate. For example, REITs are not subject to corporate income taxes, which means that more of the company’s profits are passed on to shareholders in the form of dividends.
If you’re looking for a high-quality REIT with a strong track record of performance, Realty Income is worth considering. The company offers investors consistent monthly dividend payments, diversification, and unique tax benefits that make it an attractive investment option.
Realty Income is one of the best options out there for earning passive income. With its long history of paying out dividends and its diverse portfolio, Realty Income is a great choice for those looking for stability and consistency in their investments. If you’re looking for an investment that will offer you reliable monthly income, Realty Income is a great option to consider.
Thank you so much for reading! I wish you the best of luck in your entrepreneurial journey and if you enjoy the content I suggest checking out our other articles from Mindset Theory!
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Originally published at https://www.mindsettheoryofficial.com on May 25, 2023.