If you’re buying or selling a home—or simply want your money to work harder—there’s a surprisingly simple strategy to generate passive income from real estate: REITs (Real Estate Investment Trusts). They offer the earning power of real estate without the hassle of being a landlord, and in some years, they’ve even outperformed the S&P 500. Here’s how you can use REITs to start building wealth today.

Who Should Invest in REITs?

REITs are ideal for anyone who wants exposure to real estate without buying a physical property. Whether you’re:

• A home seller looking to reinvest equity,

• A buyer waiting for the right opportunity, or

• Just looking to diversify your portfolio...

REITs give you access to commercial, residential, and industrial real estate investments through publicly traded stocks—no tenants, maintenance, or property taxes required.

How Much Can You Earn with REITs?

REITs are legally required to pay out at least 90% of their taxable income as dividends, which often translates to attractive yields—sometimes 5% to 8% or more, depending on the type of REIT. That’s what makes them such a popular passive income stream, especially for those seeking regular cash flow.

How to Invest in REITs

Getting started is easier than you might think. You can:

• Buy publicly traded REITs through a brokerage account, just like stocks

• Invest in REIT mutual funds or ETFs for instant diversification

• Explore non-traded REITs, though these may come with more risk and less liquidity

Focus on REITs that align with your goals—whether that’s monthly income, long-term appreciation, or sector-specific exposure like healthcare, data centers, or apartments.

More Ways to Earn Passive Income with Real Estate

While REITs are a strong entry point, other real estate-based income strategies include:

• Owning short-term rentals (Airbnb)

• Long-term rental properties

• Real estate syndications (group investments)

• Seller financing or note investing

Each comes with different levels of risk, involvement, and return—but all have the potential to create steady, reliable income.

The Bottom Line

REITs offer a low-barrier, low-effort way to tap into the income and growth potential of real estate. If you’re a buyer or seller looking for ways to grow your wealth beyond your primary residence, it’s time to consider REITs as part of your financial plan.