Hello, everyone and welcome back to a new video. Now my name is Sean and let's chat about making absolute bank in real estate, because if you don't know this 9 out of 10 millionaires have their hands in the real estate. Cookie jar real estate is one of the best ways of making money. It's tried and true, the risk is relatively low.

If you know what you're doing the ROI is amazing and it's a phenomenal retirement plan, if you start young and start building this wealth up enough problem, is most people can't afford to play the real estate investment game because the cost of play is super high? But today I'm gon na be telling you how you can actually invest in real estate for only $ 100, so guys this is actually not a clickbait video that a lot of people are probably thinking. It is right now it does not click fate, 100 % legit. There are ways you can actually invest in real estate without spending two hundred to three hundred plus thousand dollars on buying a house to either flip or to buy and rent out plus. The method today is actually incredibly less time-consuming and incredibly, less stressful, alright.

So those are two bonuses are going to be talking about today as well, and I'm also wearing my Hawaiian shirt, because so many people think that a real estate investor or someone who's made a lot of money in real estate are just old, dudes hanging out on A beach in Hawaii or a tropical place, because they've got so much money and they're the ones dominating the real estate investment game and that someone, my age, can't actually get into it. So that's a myth and I'm gon na be showing you. Why that's a myth today, because essentially you can throw your money into a pot. It can be invested into real estate and you don't need to have tons of money guys.

I'm talking about a REITs and REI T a real estate, investment trust, okay. It is a phenomenal way to get in and invest your money in real estate properties again with only like a hundred bucks, and there are actually other ways to invest in real estate without spending that two hundred three hundred thousand dollars that are not REITs. So I'm gon na go over exactly what a REIT is, how you can make money doing it this way, but there's also other ways that you can be making money in real estate that are not a REIT or not buying a home straight up. So I recommend you subscribe to this channel I'll, be making videos on those methods in the coming weeks so again subscribe if you're new around here, but ok, what's what's a REIT well, a REIT is essentially a company that owns operates or finances an income producing piece Of real estate aka, it's essentially a massive company with loads of capital, loads of money that go in, buy a big property that cash flows.

That makes them money and pays it out to those people that have actually given them money to purchase that piece of land. So I'm gon na try to break this down a little bit more, so you can get a full understanding! Think of it as a bunch of people. Think of it, as ten thousand people drop a hundred bucks into this pot into this mason jar. So now there's tons of money into this pot.

Well, this company takes this pot of money, goes down the street to this no complex and goes hey. We're gon na buy that piece of condo we're gon na buy that development. With all this money from all these people and we're gon na start cash flowing on that property, so now there's ten thousand people had dropped $ 100 into this pot. That's a million dollars of working capital that someone this company essentially can go to this condo.

To say, look: we're gon na buy ten units at $ 100,000, a pop here's, the cash for them, we're gon na buy them now. Tenants are living in those condos, and now this company is making money from those tenants. So let's say these ten condos that are a hundred thousand dollars a pop each don't get lost with this math here. By the way, let's say, we've got ten condos they're a hundred thousand dollars each and they're each making we'll call it ten thousand dollars a year.

So it's a ten percent return on the money that was spent, so we've got ten condos right, so we've got a million dollar project. That million dollars is generating about a hundred thousand dollars a year. So then, that hundred thousand dollars a year is then divvied up to all those people who have essentially put that money up front to buy that condo. So a hundred thousand dollars in profit from all those condos divided by ten thousand, because there were ten thousand people that threw money into the pot.

That means that each person that year gets about ten bucks doesn't seem like a ton right. Well, it actually is a ton for literally doing nothing. A ten percent return on your money that year is actually incredibly good. Considering the fact that all you had to do is say, yeah, here's a hundred bucks, don't make me some money to put things in a perspective.

Almost all banks don't give more than one point. Five percent of the amount of money that you have saved with them and stocks can really be an uphill battle. If you don't know what you're doing in the stock market, because you might make a lot of money one day, you'll lose a lot of money. The next day, average returns that I've seen in the stock market from the average person investing in the stock market if you're lucky, if you're in the green, it's going to be anywhere from four to eight percent so again not a whole lot.

A 10 percent return for literally doing nothing but clicking a button is pretty incredible and if you're sitting there going alright well, this sounds pretty cool. How do I get started? How do I get started? Investing in a REIT? Well, the good news is that most REITs are actually publicly traded companies on the big stock exchanges, so essentially go gates set up with Robin Hood. If you don't know what Robin Hood it is, I made a video I'll leave. A link down below Robin Hood is a great stock trading, app, that's totally free to use, so you can go ahead and download the app on your phone.

Get set up, drop a hundred bucks in there and invest in any wreaths that you want yeah. I mean literally as simple as that. If you wanted to invest in a REIT right now, it would probably take you from start to finish five minutes step number one. You got to go download Robin Hood on your phone step number two! You got to link some sort of account or or some sort of income stream that you have to Robin Hood, so you can actually drop some money in there now that you've got money in there.

You want to go on Google, maybe search hey, which reach. Should I invest in they've all got specific niches, and you know some will invest in like strip malls. Some will invest in condos. Some will invest in retirement homes, so just pick one that you think is gon na do really well or that you like it.

Maybe look at some that are in your local area. Cuz it'd be kind of cool to be like hey. You see that condo complex right there I own 110 thousand of that place. I know it's whatever, but now once you've got your Robin Hood once you get your money in your Robin an account once you've got the REIT, you want to invest in.

You literally go to that stock in Robin head and go yeah all right. I've got a hundred dollars. How much from that buy me. You hit the Buy button and you're literally done.

Five minutes could not be simpler. Go check the link in the description on how to get set up on Robin Hood and why it's so great, but I know a lot of you - are probably sitting there going well Shawn. What's the catch, I mean if it was this good in this great and everyone could be doing it, then why isn't everyone doing it and why is it still returning a big percentage on my money? Well, there's a catch of course, there's always a catch. If something is too good to be true because, like anything in life, if it is incredibly good, there's usually a downside to it, or else you know if it was 100 percent good again millions will be doing it and then it wouldn't be that good anymore.

So the downside well there's two main downsides to investing in a REIT number one, and it's usually the most important factor that most people look into is the fact that you're not going to be building any equity in these properties as you're investing in them. As you would with a traditional property, so if I went and actually bought this condo outright, I'd buy it for a hundred thousand dollars I'd be making my 10 % on it every year. But then, in ten years, when I go to sell it, it's probably gon na be worth like a hundred and fifty thousand one hundred and sixty thousand dollars. So then I sell that and I make an additional sixty grand when I sell that property with a REIT.

You don't really get that so sure after 10 years you can sell your stock in your interest in that wreath, but you're really not going to be making any money on that which kind of leads me into my second major reason why it's not not as good As a traditional form of investing in real estate is because the stock prices on these REITs basically stay the exact same sure they might go up or down five to ten percent over a few years, but they're really not going to be going upwards and on it. On the bright side, they're, typically depending on the company, they're typically not going to be going downwards, and this leads into my second major reason why it is a downside in investing in wreaths is because you don't get paid like a traditional stock to where you know. If the stock goes up, you're like sweet, I'm gon na sell this. I'm gon na cash in on the money that I've earned, not necessarily REITs, are actually paid in dividends.

So, instead of you again, making the making money off the stock price going up or down you're, actually making money based on dividend, so you're getting pay dividends every single quarter. Now, why is it a downside to actually be getting paid in dividends versus the other way? It's actually because on dividends, you have to pay taxes on it and we're not talking like property taxes or some other type of taxes, we're talking income taxes so depending on which tax bracket you actually fall into. You could be giving up a third or a quarter of all money made from your read just to taxes, so that kind of sucks there's really no way to avoid that either. You can kind of thing angle, your taxes in your income, but with a riu really can't because it's dividends paid to you.

So those are kind of the major two differences with buying a REIT you're, not building any equity. Again sure you can sell that stock and pretty much get your money back after you're done kind of investing in that, but you're not really going to be cashing in big-time, as you would with a traditional real estate investment and then you're getting paid with dividends. So you're getting taxed on it, so really that you know ten bucks that you would have made that year. It really goes down to maybe hey.

I made seven bucks this year or I made you know 750, which is still not bad. It's still a pretty good return on your investment, but again instead of 10 % you're kind of looking at maybe a 7 % return. So, to sum it all up, I always like to tell people think of a REIT as you trading money right now to have that money. Pay you quarterly.

So if you're sitting there going all right well, you know I've got 10 grand, that's just sitting in a savings account. I really don't need to be using it for a while. I could roll it into maybe an IRA or I could roll it into just a the money market or something like that or a CD or something there's there's a lot of ways. You can kind of save up your money, but if you're like I'm, really not going to be using it and I kind of want a decent return on it, then you can take that 10 grand you could throw it into a REIT and that regal, basically just Pay you quarterly on that money, so you might as well be paid quarterly for basically doing nothing just having your money parked somewhere opposed to just have it kind of sit there and not really making any money and then again the the bonus or the upside is When you no longer want those dividends paid to you, you just basically sell off your REIT and you go grab that money and do whatever you want with it.

So really a REIT is for someone who doesn't have the time doesn't have the money or doesn't have the knowledge to actually invest in the real estate game. Because again, everyone knows. Investing in real estate makes you tons of money, but most people either don't qualify or just can't play the real estate investment game. So if you really want to get into real estate and cash in on those high returns, I highly recommend that you just go.

Invest in a REIT, take you five minutes and you'll be getting some serious returns for literally doing nothing, and the last thing I'll leave you on with this video is the fact that I've actually got some money in a REIT right. Now I only make about a hundred bucks a year off the REIT, which is nothing crazy, but that hundred bucks that I make gets rolled directly into my investment portfolio. So now I'm adding a hundred dollars a year into my investment portfolio for literally doing nothing and then, when I no longer want 500 bucks I'll just cash in on the money that I put in on that read: probably roll that entire thing into my investment portfolio. Once it's actually rolling and making me more money, so it doesn't make sense in some cases, and it could make sense to you if you've literally got nothing invested, you don't have a whole lot of money and you're like hey.

I just want to get my feet. Wet I want to get started with this. What should I do a real estate, investment trust, simple, yet effective way. Hopefully you learn something new.

If you did, please smash that, like button again check the description to check out Robin Hood. If you want to get started in a REIT and do some googling for which week you want to actually do, but most people don't know about REITs, that's what I want to make this video, because a lot of people think if you want to invest in real Estate you're gon na need tons and tons and tons of money. You really don't and you can actually cashflow pretty well, if you find the right property again, I'm an Arizona mortgage guy, so I do stuff like this all the time, I'm big into real estate. I want to know your feedback, though, down below in the comments.

Is this something that you think you would be interested in, but doing a REIT or, if you're like now, the traditional ways way better. I think I'll just try to save up my money and do that up. Leave me a comment down below either way subscribe if you're new around here guys and until next time, I will see you in the next video.