Making investments are the means by which we eventually reach financial independence and than abundance. Many financial and investment experts have often repeated the virtues of investment. However, with regards to earning passive income, most people are not as knowledgeable about it as they are in investment.

After investing, whatever remaining amount you have left come be used to spend on your other needs. So how do we create this kind of passive income?

Alright, let us now look into some ways in which we can create our passive income. And they way we can do this is through real restate. Specifically REITs, also known as real estate investment trusts.

So you might be asking to yourself now what are REITS? They are basically companies that are already listed publicly which does real estate. Many people wrongly think that REITs actually own their own real estates.

As mentioned earlier, it is not the case. Some REITs actually don’t own their own real estate. Instead, they would focus on services like mortgage cosultation,etc.

So what kinds of REITs are there? I’m glad you asked. We can basically REITs into two types. The first types of REITs are those having their own real estate and the second type are those without their own real estate. Sounds simple enough so far right? Now let us further define real estate as buildings which can be residential, business, shopping malls,etc.

As for the REITs which do not own real estates, they usually focus on the service side of real estate investments. Some of these services are, but not limited to: credit facilities like mortgages, investing in securities and buying mortgages.

Ok, so after learning the basics of REITs, how do we invest in it? Firstly, you can invest in these REITs by buying shares from them. You can start small by buying a few shares first if you do not have much cassh at first.

Alright so why is investing in REITs as a way to passive income recommended? Well, first off, REITS usually give back consistent good returns through their dividends. Potentially you can get back around eight to thirteen percent each year.