How much do i have to put in a reit in order to get $2k in returns monthly.?

Question

How much do i have to put in a reit in order to get $2k in returns monthly. How do i factor i much i will get in returns if i invest in a reit.

Answer 1

It is a question of mathematics. If you want $2K/month, or $24K/year then pick a percentage rate. The higher the rate, the higher the risk.

Perhaps you would be comfortable with 8-9%. So,

24K = .08(Investment)
and Investment = 24,000/.08 which is it $300K. For 9%, it will be $267K.

But I would not put all of that into one REIT. Here are several that would return 8% or better and pay monthly:

CLM, PWI, CRF, BIF, PWE, PVX, ERF, BTE, MTR, HYI, PHY, CIK, HYP, ACAS, CRT, and PBT.

These are Mortgage companies, Energy companies, or Fund companies. I think the safer ones at this time are: PHY, CIK, and HYP. I do own some of the stocks in this list.

If you ask a broker about these, you will be told not to bother. The reason is because these are not "growth" stocks. The price doesn't change much and brokers make their living trading stocks. They don't want you to buy and hold which is what you would do with a REIT.

If you want more information on these, go to the URL and enter one of the symbols. On the left side you can find out what the company does (profile) and check the prices (historical prices). In the latter window, you can set it to display only dividends so you can get some idea of the dependability of the company.

If you have any questions, email me.

Edit:

Sorry, Muncie Birder, ALL of the stocks I listed, structured as REITs, pay monthly dividends. Many do.

Answer 2

Different REITs have different dividend rates . . .
Your question is tooooo lacking in specifics but
If the dividend rate was 5% , and $2K a month is $24K per year . . .
then the equation would be (.05) X = $24,000
So the investment ( X ) would be $480,000
BUT you did not say which REIT so we don't know the actual dividend rate .

>

Answer 3

Different REITS have different yield rates.

You are asking for $24 K per year. At 6% yield that would require an investment of $400,000.
.

Answer 4

Unfortunately, REITs do not pay dividends monthly. They pay quarterly, so investing in just one REIT will not do the trick. There is a closed end fund that invests in REITs and pays a dividend monthly. It currently pays 0.20 per share monthly and trades at 24.40 a share. RNP. So you will need 10,000 shares or $244,000 worth.

Answer 5

Robert L is right, however, if the REIT you want to buy has different yield you will need to divide 24K by that yield.

ie.
x = yield %
amount =

24000
-----------
(x / 100)

Answer 6

$96,000.00 (You need to make at the very least 25% annually and that is hard for a REIT unless you have a margin account and borrow another $96,000.00)