3 Mistakes Passive Income Investors Make With REITs

Real estate investment trusts (REITs) were created so that individual investors could access institutional-level properties. They are specifically designed to pass income on to shareholders in a tax-efficient manner. But you still have to dig in and understand what you're buying or you could easily make some simple mistakes that will hurt you in the long run.

Here are three things you need to know to make the best investment decisions with REITs.

Inflation is on everyone's mind today because prices for everything from gasoline to food are rising fast. However, inflation is an ever-present issue, and it can materially reduce the value of the income you receive from your investments if your living costs rise but your income stream is static. It's why bonds can be a problematic investment at times of faster inflation, because the interest payments usually don't change.

Source Fool.com