Want to Invest in the Real Estate Market With Less Stress? Try This REIT.
Real estate investing can be very lucrative. However, even though the income from real estate is passive, it often takes a lot of work to make money managing property investments. That can make real estate investing stressful for those who don't have a lot of time.
A much more relaxing way to make money in real estate is by investing in Realty Income (NYSE: O). The real estate investment trust (REIT) has an extremely durable business model, which enables it to generate steadily rising rental income. That allows the REIT to pay an attractive and growing monthly dividend, making it excellent for those seeking to generate truly passive income from real estate.
Realty Income has a very low-risk business model. The REIT focuses on investing in freestanding properties leased to tenants in industries resilient to economic downturns and the pressures of e-commerce. These properties include grocery stores, pharmacies, convenience stores, warehouses, and light manufacturing facilities. The company leases those buildings to credit-worthy tenants under long-term triple net agreements (NNN) that typically feature annual rental rate escalators. That lease structure requires that the tenant cover maintenance, building insurance, and real estate taxes. As a result, Realty Income collects steadily rising rental income from its real estate portfolio.
Source Fool.com
