Real estate investment trusts (REITs) and real estate investment groups (REIGs) are hands-free approaches to real estate ownership. With REITs, corporations pool funds from investors to acquire and develop properties, primarily focusing on office spaces, shopping centers, hotels, and malls. Investors can contribute funds without delving into managerial responsibilities, as the company takes charge of tasks like advertising available spaces, conducting tenant interviews, rent collection, and maintenance oversight. Monthly dividends, usually exceeding 90 percent of profits, make REITs particularly appealing for retirees.

REIGs, on the other hand, involve corporations acquiring and developing assets before inviting investors to join the group. Members contribute a specified amount and subsequently enjoy monthly dividends. The corporation deducts a small percentage from rental income to cover routine management services, such as tenant management.

Additionally, the REIG deducts a portion of each investor’s dividends to cover unexpected vacancies, ensuring regular dividends throughout the year, even during periods of high vacancy rates. This strategy helps cover essential expenses such as security and insurance payments during challenging times. However, investors should exercise caution and scrutinize the management practices of REIGs to avoid potential losses resulting from unethical practices, such as mismanagement of funds and neglecting tenants’ needs.