The Personal Finance Podcast - How to Invest In Real Estate Without the Headaches (Fundrise VS REITS!)

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Starting point is 00:00:56 Find your advisor at IG Private Wealth.com. On this episode of the Personal Finance Podcast, we're going to talk about how to invest in real estate without all the headaches. And we're going to compare Fundrise versus Reitz. Personal Finance Podcast. I'm your host, Andrew, founder of Master Money.com. And today on the Personal Finance Podcast, we are going to be talking about how to invest in real estate without all the headaches. And we're going to be comparing Fundrise versus Reets. Make sure you follow this.

Starting point is 00:01:48 podcast on Spotify, Apple Podcasts, or whatever podcast player you love listening to this podcast tune. If you want to help out the show, leave a five-star rating and review on Apple Podcasts or Spotify. And don't forget to check out the Master Money newsletter as well, where we set out weekly tips, tricks, and a bunch of other things on that newsletter for you guys to deep dive into finance as well. So today we are going to be talking about how to invest in real estate without all the headaches because, contrary to popular belief, you're going to hear this all the time on TikTok. Maybe you hear it on Instagram as well. People are making it sound like real estate is a really easy way to invest. Now, I've owned a number of properties and I've

Starting point is 00:02:25 managed them myself for a long period of time. Let me tell you something. Real estate, owning physical real estate, rental properties or flipping houses, is not a passive endeavor whatsoever. It actually takes a ton of work. And it's not just the work that you have to do within the house. Some people like to do the work inside the house, meaning renovating the houses and things like that. It's not just that side of it. And if you really want to scale a real estate business, you should not be doing those activities, but it's also the mental side of it, the capacity you have to take to manage these tenants, to get new tenants into properties. There is a number of different things that happen in real estate that make it completely not passive. For example, if a tenant leaves a property when it

Starting point is 00:03:07 comes to real estate, it can take you weeks before you find another tenant. You have to interview a bunch of different tenants to ensure that you get the right tenant in your property who qualifies financially, who has not had any evictions in the past. You have to comb through Zillow. You have to comb through realtor to see who is actually sending me applications. You have to go through all those applications. And then you have to figure out, okay, is this person going to fit? And do they actually want to stay here once they see all the rules and regulations as well?

Starting point is 00:03:32 That process can take a week in and of itself for just one property. Now, imagine if you have 15, 20 properties, how much time that can take out of your day every single week. So managing these properties is not a passive endeavor whatsoever. Now, some people can manage them faster than others. You can get a property manager, but guess what? You still have to manage that property manager because nobody is going to take care of your property like you do. So it's still on your mind.

Starting point is 00:03:55 It's still something that you have to do now. Can it be done? Absolutely. There was a police officer who wrote a book on managing rental properties, and he had 80 properties while working at a full-time police officer. It can absolutely be done. But if you want to manage your properties well, if you want to do the right thing and make sure that your properties are up to date and they're maintained and they're clean and they're nice to live in, and they're in nice areas to live in, then you're going to have to do a lot of work

Starting point is 00:04:16 and you're going to have to do a lot of maintenance and upkeep every single time you have someone move out. And let me tell you this. This is not even count finding more properties. So then you have to go in, you have to find more properties. All of this stuff, what I'm trying to get at here is real estate is not passive.

Starting point is 00:04:29 It's absolutely not passive. And so don't listen to people on TikTok who say real estate is passive and that a house is just going to magically appear because it's not. But what it does do is it does help create a tremendous amount of wealth. So what I want to do today is I want to show,

Starting point is 00:04:43 show you some ways where you can invest in real estate without actually having to own physical property. Now, physical property has some tremendous benefits, including the cash flow, the appreciation, the tax benefits, all of those different things. And some of the passive ways to invest in real estate don't have all of those benefits. So the work that you put in with active real estate will have a ton of benefits. But the passive ways are things where if you want to focus on your business or your job and you don't want to have to worry about somebody else's life and worry about them calling you up if their sink is leaking or calling you up if their toilet is exploding, which I always say that as a joke on here because it's happened to me before where

Starting point is 00:05:20 I've had a tenant call me and they flushed their toilet and the toilet flushed in the wrong direction and your entire floor flooded. We couldn't figure out the problem. And then $5,000 later, we found that it was an entire plumbing system that was messed up. So this is just the reality of real estate. This is the reality of how it works. But if you don't want to have to deal with that stuff, which is a lot of people don't once they realize this is some of the stuff that you have to do, even if you have the property manager, it's still something you have to think about. You have to put the funds up to be able to fix that plumbing system.

Starting point is 00:05:44 You have to put the funds up to be able to fix that leaky sink. So if you don't want to deal with that stuff, there is passive real estate where you can still diversify your portfolio into real estate because that's something you definitely want to do and to ensure that that's going to allow you over time to build wealth. So there's a couple of different ways to do this. We're going to talk about Fundrise, which you know is a sponsor of this show. I absolutely love Fundrise and I use them.

Starting point is 00:06:07 That's why they sponsor this show. But in addition, we're going to talk about reits as well, which I also invest in reits. And Fundrise is a private reet. And then reits that we're going to talk about here are reits that you can buy in the stock market in various areas like that. So if that's something you're into, you want to learn how to passively invest in real estate and you want to get ready to dive into some of this. Then let's get into it. All right. So the first thing we're going to talk about is what a reet is.

Starting point is 00:06:33 So reet stands for real estate investment trust. And what reits do is they are companies that own operating. or finance income generating real estate. So reits are actually modeled similar to mutual funds where they get a pool of a bunch of different investors, which gives all those investors the possibility of owning real estate at a much lower cost and actually buying a massive property. So there's a lot of different types of reeds out there.

Starting point is 00:06:55 They invest in different industries. They buy different types of industries. So you can think of reits that just buy apartment complexes. There are some reits who focus on things like data centers. There are some reits who focus on health care facilities, like hospitals or doctor's offices or things like that, where they just focus on health care and they specialize in that. There are some that specialize in hotels, which I'll tell you that's one type I would not be interested in. Because if a company's investing in a hotel and you're in a

Starting point is 00:07:22 recessionary environment, then those aren't going to do as well as something like a health care system. So that's something we're going to talk about here. There's some that invest in infrastructure, things like cell towers, energy pipelines, office buildings, retail centers, self-storage, Timberland, warehouses. There are so many different types of reeds out there. So figuring out how you want to invest your dollars is actually a really cool thing. Because if there's something you're interested in or there's an industry you know, say, for example, you're in the healthcare industry.

Starting point is 00:07:48 You know the healthcare industry pretty well. And you want to see how these companies actually operate when they buy hospitals or when they buy office buildings for doctors or things like that. Then what you can do is you can look into these reits and you can see how they're investing and you get a better understanding of what you're doing as well. So if you have a specialization somewhere and you know, know that industry, that's a great way to look into it. And let me tell you something. Something like a healthcare, for example, we are always going to need health care.

Starting point is 00:08:13 Health care is always going to be there. So that's a great place to look into if a reet is really heavily invested into health care. That's a recession proof investment. And so something like that where reits are investing heavily in health care, but they're also making the right decision and buying them right, those are the two things in the equation. They're recession proof and buying them right are two things that I would definitely consider when you're looking at reits. Now, these are how reits actually operate, they invest in all different types of things. But you also as a company have to qualify as a reed. For example, when I had my real estate holding company, I couldn't just become a reet right away. I couldn't just qualify as a reet magically. What I'd have to do is go

Starting point is 00:08:48 through a whole process. So companies that qualify as a reet, this is what they have to do. They have to invest at least 75% of total assets into real estate, cash, or U.S. Treasuries. They have to actually derive 75% of their gross income from rents, and interest on mortgages that finance other real property or real estate sales. This is the big one, the third one. This is my favorite one. They have to pay a minimum of 90% of taxable income in the form of shareholder dividends every single year.

Starting point is 00:09:19 Now, if you haven't listened to this podcast before and you don't know what a dividend is, a dividend is when a company shares a portion of its profits with its investors. And usually dividends come in the form of quarterly payments. So every three months, they will pay you a dividend. Now, some REITs, like Realty income, for example, the ticker is O, Realty income will pay you every single month. They pay a monthly dividend, but most REITs will pay on a quarterly basis. Now, the cool thing about this is if you look at REITs on the stock market,

Starting point is 00:09:46 and if you're looking for the dividend, it's called the yield when you're looking at a stock ticker symbol. But when you're looking for that dividend yield, what you'll see is that REITs have a much higher yield because they're paying out that 90% of taxable income in cash flow to its shareholders. So that's the cool thing about investing in REITs, is you can get a higher dividend income,

Starting point is 00:10:04 but the higher the dividend is in a REIT, the more risky that REIT is to invest in, because it's very hard to maintain something like a 10% dividend. So you want to look for REITs who have been doing it for a very long time. For example, the one I mentioned, Realty Income is a dividend aristocrat. I mean, they've been paying that dividend out for a long period of time. Now, their dividend is much lower than some of these other REITs that are out there,

Starting point is 00:10:24 but they've been able to maintain it over a very long period of time. So that's something I look for when I'm investing in REITs, is I want to make sure that they've been paying, that dividend for a long time. They also must be an entity that's taxable as a corporation. They must be managed by a board of directors or trustees, which is a big difference. So no random private real estate companies can just become a REIT. They must have at least 100 shareholders after the first year of existence. And they must have no more than 50% of its shares held by five or fewer individuals. So nobody can own a massive majority in a REIT. What this does is it helps

Starting point is 00:10:59 promote the REIT actually doing things that are income-producing activities that actually will benefit the shareholders. So that is some of the qualifications that you have to have in REITs. Now, there are a bunch of different types of REITs. There's equity REITs, which equity REITs manage income-producing real estate. So revenues that are primarily generated through rents. I love equity REITs because they're buying either housing, like apartment housing like we were talking about.

Starting point is 00:11:21 They're buying health care facilities. And they're collecting rents. That's how they make their money. That is a historically proven way to build a business. that's the cool thing and why I love those types of reeds. In addition, there's mortgage reits. So mortgage reits lend out money to real estate through mortgages and loans, and then they make their money by either selling those mortgages and or collecting interest from your payments. So those, to me, are a little more risky in my eyes than are something like an equity

Starting point is 00:11:48 reed because, as we know, what happened in 2007, 2008, mortgage-backed securities are something that were not the best thing to be holding at that point in time. Someone's always going to have to live in a house and pay rent. Someone's always going to have to have a health care facility and pay rent. Someone's not always going to have to have mortgage-backed securities. I mean, people will always want financing, obviously, but mortgage-back securities are something that are a much different asset class than it would be just owning the building. And then there's hybrid reits that do both types. Some of them have some equity and some mortgage, which that's a diversified reed that also can be something that has really beneficial to you. Now, there are two ways

Starting point is 00:12:23 that you can invest in reeds. And the cool thing about that is, the first one is that there are public reits. So public reits, you can go on the stock market. Right now, you can pull out your favorite stock market act and you can look up some ticker symbols of public reits. So one thing I like to do when I start off my search, if I'm looking for a new reed to invest in, is I type in to Google, I say, what are the reits that are dividend aristocrats? And you can look up and see a bunch of different ones. Now, having real estate exposure does not mean it has to be reits. For example, McDonald's is one of the largest real estate holding companies in the world. In fact, At one time, I believe it was the largest real estate holding company in the world.

Starting point is 00:13:01 Because a lot of times, when McDonald's franchise is out, its locations, it still owns the real estate that the building is on. And a lot of times it owns the buildings as well. And how many McDonald's are out there? There's thousands and thousands and thousands of McDonald's in the world. So it does not always have to be a REIT to have that real estate exposure on the market, but a lot of times, REITs are the ones that are going to be the best bet for you when it comes to trying to get a lot of real estate exposure. So when you're doing your search for

Starting point is 00:13:29 REITS, it's the same thing. If you haven't heard our episode talking about dividend stocks, I treat REITs very similarly to dividend stocks. I want to see a long-term history. I want to see how much their dividend is paying out. How much of that actual profit is their dividend paying out? But in addition, I want to see that sustainable for a long period of time. So typically, when I look at investments, I want at least 10 plus years of growth. But as of late, since we've had such a bull market for such a long period of time, I look closer to 25 years to make sure that that reet actually made it through the Great Recession where we had one of the biggest real estate crisis as we've ever had. So if you're looking for something like that and you want to see long-term returns,

Starting point is 00:14:06 that's what I look for when I'm looking for public reits. Now, private reits are a little bit different because private reeds have a lot of new things that have been coming out, which we'll talk about here shortly. When I'm looking at public reits, because you can't see what's happening fully, I'm looking for that long-term history. So there's a bunch of them out there that you can look at. And one cool thing that you can think through here is, say, for example, we'll just keep continuing the example of realty income, which the ticker symbol is O. So with realty income, for example, you can look them up and see kind of what kind of companies are renting from them. So say, for example, realty income has a lot of shopping centers, for example. So if you

Starting point is 00:14:40 look at that, they own a bunch of different buildings. And they're one of the largest holders of Walgreens when it comes to real estate. So they own Walgreens, 7-Eleven, Family Dollar, FedEx buildings, LA Fitnesses, CVS's, Walmart. AMC, so they do a lot of different things like that where they're owning staple companies that are out there. So their diversification is pretty interesting. And you can look up their top 20 companies and all those companies I just mentioned were part of their top 20. And so you can see it all the way across their tenants, how diversify they are, but they also have some really big companies. That's a very good sign. Because if you look at some of these reits and you're trying

Starting point is 00:15:13 to figure out which one should I invest in, if they have a lot of S&P 500 companies within that reet, then you know that they're holding a good amount of companies that are strong balance sheets. And you You want companies that are strong balance seats that are renting out to you. In addition, I like to look for REITs that have strong anchors. What does that mean? If you're looking in a shopping center, for example, you want something like a really big grocery short chain in there, or you want something like a Target or a Walmart in there. Because if they have a lot of anchor stores like that, that means all the stores around them

Starting point is 00:15:41 or at least going to have a much higher probability of doing better than they would at those stores were not there. If you've ever seen those strip malls where there's no major store within that strip mall, usually those stores don't do as well as companies who have that major anchor point within that real estate entity over there. So that is one thing I look at as well. And you can look at the asset mix when you look at their quarterly statements. You can listen to their earnings calls. If they're a publicly traded company, if they're a public rate, you can listen to their earnings calls.

Starting point is 00:16:07 They talk about which companies are there. You can read their 10K reports. You can read their yearly reports and see who is renting from them, who is their investors, all of those different types of things. So that's what is really cool about REITs is you can kind of pick and choose between them and figure out who is actually got those big anchor stores, those big companies anchoring down their areas. In addition, the health care REITs, like I said, I also love those health care reeds. You can see who has the big hospitals because usually hospitals don't go out of business very often. So if they have a hospital specific area, they do a lot of research to make sure that hospital is needed in that area. And in addition, as we know right now, the health care system is growing faster and faster and faster.

Starting point is 00:16:46 every single year. So that's another great place to look if you're thinking about that. And in addition, you want to look at places maybe that have housing like apartment buildings and things like that. You're going to always need housing. You're going to always need apartments. You're going to always need single family houses. So it's very interesting to look at some of that stuff as well.

Starting point is 00:17:02 Now, hedge funds obviously buy a lot of real estate. And so sometimes REITs are owned by hedge funds. There's a lot of different corporate entities that go into play there. And I've actually dealt with hedge funds where I bought real estate from hedge funds before. And they play a lot differently than maybe like a standard landlord would. So it's a very different and interesting area to be putting your dollars when you do that. So those are just some things to consider as you go about trying to figure out how to invest in reits, especially when it's a public reit.

Starting point is 00:17:27 In addition, there's private reits. And private reits have come a long way as of late. It used to be where you had to be an accredited investor, which a credit investor means you have to have a high net worth or a high income to be able to invest in some of these private reits. But now companies, and there's a bunch of them out there, but my favorite one right now is Fundrise. And Fundrise is a great.

Starting point is 00:17:46 one to invest in. That's why they sponsor this show. And I'll talk about Funrise a little bit later here too as well. But Fundrise is a great one to invest in because of a number of different reasons. So Fundrise is a way where you can invest with private REITs for as little as $10. And that's really, really cool for people to be able to enter into this. You can put $10 in and say, hey, I want to see what this goes. I want to see what happens and start at that point. Or you could start with $1,000. You can start with $2,000. It doesn't matter what you do, but they actually open up that new plan to start you off at $10 if you just want to test the waters and see how it goes. So I'll talk about some of returns with Fundrise over the last couple of years as well so that you can say hey is this for me is this something that I want to do so before we go any further now let's jump in to the pros and cons of reeds so lately I've been noticing how fast things are changing at home the kids are growing like crazy clothes don't fit anymore and routines are changing and it just hits you life is expanding and when

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Starting point is 00:20:21 Just go to Indeed.com slash personal finance right now and support our show by saying you heard about Indeed on this podcast. Indeed.com slash personal finance. Terms and conditions apply. Hiring, Indeed is all you need. Amazon presents Jeff versus Taco Truck Salsa, whether it's Verde, Roja, or the orange one. For Jeff, trying any salsa is like playing Russian roulette with a flamethrower. Luckily, Jeff saved with Amazon and stocked up on antacids, ginger tea, and milk. Habaniero? More like Habinier, yes. Save the everyday with Amazon. There's more to life than finding the perfect car. But finding the perfect car can help you get the most out of life.

Starting point is 00:21:13 Like the SUV that handles everything from drop off to a car. off road and the car that hulls groceries and hockey teams or the van that's gone from just practical to practically family whatever you want wherever you're going start your search at auto trader dot caa canada's car marketplace so here are some of the pros and cons of reach there's a bunch of different pros and cons and i'm going to talk through some of these here quickly so that you can understand is this right from me some of the pros are yields tend to be quite high so we talked about this, where the dividend yield that they pay out to investors is usually much higher than just a standard stock or a standard bond. Number two is investing in REITs provides a reliable

Starting point is 00:21:56 source of passive income. So this is actually completely passive. We're going to talk about in a couple of future episodes, we're going to be talking about the difference between active income and passive income. Reets are about as passive as you can possibly get. Investing in the stock market is about as passive as you can get. Because you're just putting your dollars there, you're letting them manage and handle everything, and then you're just collecting the income. Number three is REITS have professionals who handle every aspect of the properties, including the legal work, the profits. Every quarter, they give you a share of those profits, and they handle everything for you. Number four is most reits are larger than individual real estate firms, and so they own a lot

Starting point is 00:22:31 more properties than individual real estate firms. Why is this important? Because when it comes to real estate, a lot of times economies of scale is a big thing, meaning that as they scale, the larger they get, the easier it is to run that real estate company. I noticed this when I started to buy properties. When I bought my first property, it was a lot harder to maintain when I had multiple properties because at least you have the cash flow and the revenue was rising when you have multiple properties. So if one thing goes awry in one property, you have the other properties bringing it up over time. So having that scalability, REITs have that because they get an influx of cash from you, the investor, and over time they get to share that cash with you in terms of

Starting point is 00:23:05 a dividend. And then transparency. So REITs have to be transparent by law and give you regular reporting and things like that. So this transparency is really good. for investors. And then number six, REITs allow investors to get started investing in real estate with a much lower

Starting point is 00:23:21 entry point than would if you had to buy a physical property. Obviously, when you buy a physical property, say, for example, you had to buy a half a million dollar

Starting point is 00:23:29 property, you'd have to put $100,000 down. Whereas when you're looking at a REIT, you can start with, like we said, as little as $10. So this is something that's really,

Starting point is 00:23:37 really enticing for a lot of new investors that want that real estate exposure. Now, the cons are, the growth is lower. So you have low growth in terms of appreciation, REITs don't just appreciate like crazy. Most of the income is coming in from the dividend. So when you buy a property, you get to share in that appreciation. Reits don't

Starting point is 00:23:54 appreciate as much as if you just bought a physical property. The second con is dividends are taxed as regular income. So we know this. We've talked about this before. Investing your money is a much better place to put your dollars because you're taxed at a lower rate. Well, REITs are taxed as a regular income. So this is something where it is a con when it comes to that play. In addition, there's market risk, obviously. Anytime you invest in real estate, there's market risk there. If anybody tells you there's not risk in any investment, you need to run as fast as you can from them. Every time you invest, there is risk at play. But we know as long-term investors here on the personal finance podcast, we know if you invest for a long period of time, you can avoid a

Starting point is 00:24:31 lot of that risk because time plus consistently investing equals tremendous amount of growth. But anything that you invest in has risk. And then the last thing is there are some rates out there that have high management and transaction fees. So you want to make sure that you watch out for those because you don't want to be paying high fees. We know that fees are a killer. If you haven't heard our episode where we talk about how much fees are a killer,

Starting point is 00:24:54 make sure you check that out. We'll leave it in the show notes below so that you can hear that episode. So those are some of the cons there. But now I want to talk a little bit about Fundrise and why I like them because they're a private read, but the cool thing about Fundrise and there's a number of cool things.

Starting point is 00:25:07 And if you are not part of the Master Money newsletter, I talked about why I like Fundrise a couple of weeks ago. and we kind of went through some of that process as well. But the reason why I like Fundrise is that it's just super easy to use and you can start as little as $10. So I know a lot of people here who listen to Personal Finance Podcasts, who are new investors, they want to start with a smaller amount of money to get started and then they'll feel it out and see if it's something for them.

Starting point is 00:25:31 So Fundrise gives you that option. In addition, the cool thing about this is Fundrise allows you to invest in these private reits online. And they're one of the first companies to actually do this. and they're one of the largest private reits as well. Now, they have a bunch of different tiers that you can invest in, and that's the cool thing about Fundrise as well, as you can see what's in those different tiers

Starting point is 00:25:51 and see if you're actually interested in what they have. So here's some of the reasons why I love them outside of being able to start with a small amount of money. One of my favorite things that Fundrise does is they send me property updates. So say, for example, you start with the low tier plan. Well, every time you invest in that plan, you're investing in a pool of investors that also invest in that plan. And the cool thing about this is every time they buy a property,

Starting point is 00:26:11 property. They will send you an email and say, here's the new property we just bought. Here's why we bought it. Here's a bunch of different reasons. And they create like a blog post basically telling you all about the property and why they bought it. Sometimes you get a notification and they just bought a single family house. Sometimes you get a notification. They bought an entire shopping center. Sometimes you get a notification. They bought apartments. It is so cool to see how they're actually building the portfolio. This is why I like it so much because this is not something you can truly see without doing a ton of digging when it comes to actual public reads. But Fundrise actually shows you the properties that they are buying and what you own a little piece of.

Starting point is 00:26:46 And that's the cool thing about Fundrise is that you see how they're developing these portfolios and what they're doing. And you can actually see the exact property, the location where they bought it, how much they bought it for. You can see all those different things as an investor. And it really feels like you're truly involved in the process. And that's what I actually like about that. And I love getting those emails and reading through them. It's just fun for me. It's something interesting to do when you get those emails as they come in.

Starting point is 00:27:08 they've had strong returns over the last four years is number three. So over the last four years that I've been investing with Fundrise, they've had about a 13% return. Now, real estate obviously has been exploding in the last couple of years. So that is a part of that. The first couple of years, I think we had about a 7% to 8% return. The last year, there was like a 20% to 30% return that we had on our investments. So I think I'm looking at it now, it was 21% is what we had on our investments on that last year.

Starting point is 00:27:35 So that skewed the data a little bit. But it had great returns. those are strong returns over time. And that's the interesting thing is that as you diversify into Fundrise, you'll see, hey, how much are these returns and are they worth it for me to do this instead of investing my dollar somewhere else? So that's one of the cool things as well. In addition, you get real estate exposure without having all the headaches, number four.

Starting point is 00:27:57 So you're not dealing with tenants, Fundrise is dealing with tenants and their managers. You're not dealing with acquisitions of properties. Fundrise is dealing with that. You're not dealing with back end having to remove tenants from properties if they're not paying rent on time, those types of things. So that is something where it is so passive when it comes to that. And all you do is just get those reports of what properties they're buying and their financial reports. And you can go in your dashboard and see all those different things as well. Number five, one thing I really love about Fundrise is you can

Starting point is 00:28:23 actually automate your investments fully. So you can invest your dollars into that fund every single month if you want to do a portion of your paycheck or a portion of your investment fund and you want to put it into Fundrise every single month automatically. Then you can do that with fund rise. And that's one reason why I really love them is because you can just automate this process. You don't have to think through this process. It just automatically transfers over there. Number six is you can set investment goals and try to hit that target every single year. So if you're really goal oriented, you can set up investment goals into fund rise. Say you want to put 10 grand into fund rise over the course of the next year or two. Well, you can set that

Starting point is 00:28:58 investment goal up and have it automatically transfer within that goal. So I'm a big goal person, obviously. You've heard me talk about goals a lot. And so I love to set up these types of things to have them ready for me. And I do this all the time with my budgeting systems, for example. So like in YNAB you can set up goals and say, hey, I want to buy X by the end of this year. How much do I have to put into this budget category to be able to set that up? The same thing is with Fundrise. Fundrise will do the same exact thing with your investments. And I wish a lot more brokerages and companies that actually work with investing would do this because this is something that I absolutely love to do. And you can see those investment goals and see if you're on target as well.

Starting point is 00:29:33 They have a beautiful dashboard where you can see that. And then, The dividends come every single quarter with Fundrise as well, same way as a traditional re-it. So you get your dividends every single quarter paid out to you. You can see those dividends. You can either reinvest those dividends or you can use it as an income. It depends on how you want to do it. But those dividends come in every single quarter.

Starting point is 00:29:50 And those dividends, you can go look at their rates on their website. I'm linking up Fundrise in the show notes below so that you can check that out. But you can see their rates down below as well if you want to check that out. So Fundrise is great for a couple of reasons. If you have a long-term outlook and you're looking to be a long-term investor, which most people who listen to this podcast are. They are long-term investors. We don't have a lot of day traders who listen to this podcast

Starting point is 00:30:09 because your boy is not a big-time short-term investor. So if you have a long-term outlook, then this is something that's great for you. Or if you're seeking diversification outside of something like the S&P 500, this is also another great option because having this diversified portfolio allows you to get some real estate exposure if you're not interested in investing in physical rental properties.

Starting point is 00:30:28 Or if you're willing to do your own due diligence, this is also great for you because they give you so much information at Fund Rise, that I absolutely love those property notifications. So that is another thing that is great for people who are interested in this. Now, these are some of the passive ways that you can invest in real estate without headaches. We have another episode, if you guys are interested in, that talks about a bunch of different ways to invest in real estate.

Starting point is 00:30:50 I think there's 19 ways to invest in real estate. And eight of those ways are passive, like real estate notes, all those other things as well. So you can check that episode out if you want to hear some of the other passive ways to invest in real estate. But Reets are one of my favorite. Reets are one that I do as a passive form of real estate. And it's one of the best ways to actually invest for dollars over time.

Starting point is 00:31:09 Just making sure that you know that you want to do your due diligence, make sure that you understand the risks and all those other things are the key when you're investing in reits. So listen, I truly appreciate you guys listening to this episode. If you guys have any questions, you know to hit me up on social at Master MoneyCo. And don't forget to share this episode with a friend if you think it's beneficial. I truly appreciate each and every one of you sharing this episode as we grow here. And in addition, if you can leave a five-star review on Apple Podcasts or Spotify, it helps this show grow. It helps us teach more people how to build wealth and is one of the best things that you can do to help this show grow.

Starting point is 00:31:45 Thank you guys so much for listening to this episode. I hope you learned about passive ways to invest in real estate. And we will see you on the next episode. Rosen lasagna, medium power, 15 minutes. Sounds like Ojo Time. Let's play. Feel the fun. with Play-O-Jo, the online casino with all the latest slot and live casino games.

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The Personal Finance Podcast - How to Invest In Real Estate Without the Headaches (Fundrise VS REITS!)

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