Benefits of Investing in REITs

Fully integrated real estate company Castellan Real Estate Partners encompasses all aspects of the industry, from property rentals, sales, and management to construction and development, financing, and investments. Founded by John Salib and Paul Salib in 2009, Castellan Real Estate Partners established a real estate investment trust (REIT), the Castellan Real Estate Income Fund, in 2017 to provide loans and financing to property owners and provide investors an opportunity to earn income from real estate.

Investing in real estate has always been attractive to many people, but limitations may hinder such investments. Some of these barriers include qualifying for a bank loan and rental property management. These obstacles gave rise to the creation of REITs, which have risen in popularity, as they are mutual funds that specialize in real estate.

Getting a steady income stream through annual dividend income is one benefit of investing in REITs as they are required by law to disburse 90 percent of profit to investors. Another benefit, the absence of corporate taxes on REITS and investors’ dividends, allows for higher returns. Investors can also make more money when property appreciates.

Investors have access to investing in commercial properties, which is more difficult to do as an individual, and they don’t have to get involved in property operations and maintenance. REITs allow investors the opportunity to diversify their overall investment portfolios. They also provide liquidity by enabling investors to withdraw their contributions whenever they want.