A Review Of Passive Income From REIT ARR

…Mey here on Monday morning listening to 6 Figure Shortcuts (which is the best course in building a 6 Figure income online EVER) and blogging about A Review Of Passive Income From REIT ARR

…so, to become financially free you need to have passive income…

…one way that my husband and I make money is that we invest in REITs (click here for an introduction to REITs), and most of our money is in one REIT in particular – ARR…

…to understand more about ARR, go ahead and click here to get an explanation of what a Ticker symbol is and how to research it on free websites

…this REIT pays a monthly dividend of about 16%…

…you might think WOW, that’s great…

…that’s why my husband and I bought so much of it…

…well, the price kept dropping and now the money that we put into it is worth half of what we invested (we kept buying as the price kept falling too)…

…and when the stock price goes down, the amount of money paid in dividends goes down as well…

…then a couple of months ago the stock did a 8 to 1 reverse split, meaning that 8 stocks were combined to make 1 stock…

…so it was about $2.80 per stock and then it became $22.40 per share…

…that’s when my husband and I stopped buying and just watched…

…reason is the stock could still fall in value, and then be reverse split again…

…so, the stock price has been stable since the reverse split, which happened back in August 2015…

…during this time, we still make a lot of money from the dividends from the shares of ARR that we already bought…

…so I decided to review where we were at…

…the fact that the value of our stock has decreased does not concern me as much as the dividend income decreasing…

…the reason we invested in ARR is for passive income…dividends…

…so I calculated the amount of dividends that we have received divided by the amount of money that we have invested and the return has come out to 9% over the last 5 years that I personally have been investing in ARR…

…now that’s still pretty good…

…so it basically went from 16% face value of dividends and became really 9%…

…now, truthfully, past results do not predict the future…

…so I don’t know if ARR is going to go down or up in the future…

…they say what goes up must go down, well it hasn’t gone up in the last 5 years, and it’s just been steady for the last 5 months…

…and I honestly started thinking that it might be a stock that perpetually goes down, and then reverse splits and then goes down again…

…I don’t know…

…I will say this, I’m ok with the money that I have invested in ARR so far…

…afterall, last year my husband and I claimed about $5,000 in passive income…

…which was mostly from ARR…

…and that’s pretty good…

…if we moved to Thailand or Taiwan we would already by free…

…even though it used to be more than double…

…that’s still a lot of passive income for the amount that we invested…

…not sure if I will buy more…

…probably will invest in a more stable ARR like GOOD…

…even though it gives a smaller return of about 8%…

…I hope that gives you a good idea of the risks involved in buying ARR…

…my brother actually told me that the higher the return, the more risky (usually) is the investment…

…let me know what you think of this review in the comments below!

P.S.

…I love blogging about financial freedom and sharing the knowledge that I have gained on saving, investing and mindset about financial freedom…

…I started blogging because I heard it could make you a lot of money as well…

…and eventually that money would become passive income…

…or at least, highly leveraged income…

…I have come to find that there is a system you need in place to make large amounts of money blogging…

…if you are interested in a long term strategy of passive income creation that also lets you express your creativity…

…then CLICK HERE, watch the free video and get started =)

Lucrative Real Estate Investment Trusts That Will Make You Passive Income

…we look forward every paycheck to invest in REITs or Real Estate Investment Trusts…

…why?

…because they have the biggest dividends, and allow us to invest in Real Estate without the hassle of buying a property, managing it and so on…

…plus, we love the passive income they provide…

…read on for REITs that you might want to dive into yourself…

  1. Annaly Capital – NLY

    …Annaly was the first REIT I ever bought…

    …it makes quarterly dividends at around 11%-12%…

    …the price of shares when I bought was about $16.00/share and now they are much lower at less than $10.00 a share…

    …ever since the first date it paid, I was hooked…to REITs anyways…

    …they create this nice income where I can spend more time relaxing at the beach with the family =)

    …as quoted from E-trade…

    “Annaly Capital Management, Inc., a leading mortgage real estate investment trust…

    …The Company owns a portfolio of real estate related investments including mortgage pass-through certificates, collateralized mortgage obligations, Agency callable debentures, other securities representing interests in or obligations backed by pools of mortgage loans, commercial real estate assets and corporate debt…

    …The Company uses its capital coupled with borrowed funds to invest in real estate related investments, earning the spread between the yield on its assets and the cost of its borrowings…

    …The Company’s principal business objective is to generate net income for distribution to its stockholders from its investments…

    …Under its investment policy, at least 75% of its total assets are comprised of high-quality mortgage-backed securities and short-term investments…

    …Annaly Management Company LLC is the Investment manager of the Company.”

     

     

  2. Armour Residential – ARR

    …this is our favorite…

    …first of all, the dividend yields are always around 14%…

    …and even though the stock price has gone down, it still gives us a steady monthly income…

    …second, it pays monthly…

    …and it’s pretty cheap right now at only $3.00/share…

    …buy some shares and spend more time at the beach!

    …per E-trade…

    …”ARMOUR Residential REIT, Inc. is engaged in investing and managing a portfolio of residential mortgage backed securities (MBS)…

    …The Company’s securities portfolio consists primarily of Agency Securities backed by fixed rate home loans. The Company is externally managed by ARRM…”

     

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  3. Gladstone Commercial Corp Com – GOOD

    …I actually don’t own any of this stock, but it does pay monthly and it’s ticker symbol is GOOD!!!

    …dividends are at 8%…

    ..per E-trade…

    “Gladstone Commercial Corporation is a real estate investment trust (REIT)…

    …The Company is engaged in investing and owning net leased industrial, commercial and retail real property and selectively making long-term industrial and commercial mortgage loans…

    …The Company conducts all of its activities through Gladstone Commercial Limited Partnership (Operating Partnership). The Company controls its Operating Partnership through its ownership of GCLP Business Trust II, which is the general partner of its Operating Partnership, and of GCLP Business Trust I, which holds all of the limited partnership units of its Operating Partnership…

    … The Company’s business is managed by its external adviser, Gladstone Management Corporation. The Company offers administrative services through Gladstone Administration, LLC…

    …The Company generates its investments from the ownership of income-producing real property or, to a much lesser extent, mortgage loans secured by real property…”

     

…when I first learned about REITs my mind was blown…

…I can be the lender instead of the one paying the mortgage!

…if you love this post too then spread it around and share it with your facebook wall, twitter fans, all your peeps…

…let’s make the world a wealthier place!