Uncovered: A Subtly Accessible $14 Trillion Worth Passive Income Venture Remains Unnoticed in the Open (Surprisingly Simple to Obtain)
Commercial real estate plays a significant role in our daily lives, housing the grocery stores, restaurants, and gas stations we frequent. With an estimated $14 trillion worth of suitable commercial properties for net leases across the US and Europe, this sector offers a golden opportunity for passive income generation.
Net leases, a common arrangement where tenants pay for rent and additional expenses, provide landlords with stable income. Prospective investors can tap into this income without becoming landlords themselves. A plethora of real estate investment trusts (REITs) specialize in net lease real estate, enabling individuals to collect a steady dividend income with reduced effort and investment compared to buying and managing properties individually.
The Net Lease Reit Mogul - Realty Income
Leading the REIT pack in this space is Realty Income, with its extensive portfolio of over 15,450 income-producing properties across North America and Europe. Its holdings range from grocery stores to convenience stores, comprising tenants like Dollar General and 7-Eleven. Realty Income diversifies its investments, allocating resources to various property types such as industrial real estate, gaming properties, and data centers.
This REIT pays out less than 75% of its income to investors as monthly dividends, offering an attractive yield above 5%. Owning a single share of Realty Income can rub in over $50 in passive annual income at recent share prices. Realty Income invests retained capital into more income-generating properties, enabling it to consistently increase its dividend. Over the past decade, it has raised its payout for 107 consecutive quarters.
A Diversified Net Lease Reit - W. P. Carey
One of the larger net lease REITs is W. P. Carey, boasting a diverse portfolio of high-quality properties. It owns almost 1,300 net lease properties across North America and Europe, with a focus on industrial, warehouse, and retail properties. W. P. Carey has recently divested from office and self-storage properties, reinvesting proceeds into income-producing assets.
W. P. Carey pays out 70% to 75% of its stable rental income as dividends quarterly, providing investors with an attractive yield approaching 6%. Investors can buy shares at low price points, making this an appealing option for income-seekers. W. P. Carey continues to strategically reshape its portfolio, focusing on niche sectors like fitness facilities and distribution centers.
Properties Close to Home, Earning Passive Income
By investing in net lease REITs like Realty Income and W. P. Carey, income-seekers can tap into the passive income streams generated by daily-use properties, such as grocery stores, restaurants, and gyms. Investing even small monthly sums can cultivate a substantial, dividend-generating real estate empire.
Investing in net lease REITs like Realty Income and W. P. Carey allows individuals to put their money into commercial properties without directly managing them. By doing so, they can generate passive income from familiar establishments like grocery stores and gyms.
Prospective investors can utilize this opportunity to amass a respectable dividend-producing real estate portfolio with consistent contributions, even on a modest scale.
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