REITs investment guide has taken something that only the richest historically could afford — real estate — and made it available to individual investors through the stock market. By owning, operating or financing income-generating properties, REITs pass their rental revenue to shareholders through dividends. Investing in REITs can be an excellent way to diversify a portfolio. However, as with any stock investment, there are risks to consider.

For instance, REITs tend to have a heavy debt load. This can lead to financial volatility, as interest rates shift and other market conditions change. As a result, it’s important to review a REIT’s net asset value (NAV) and debt-to-equity ratio.

REITs Investment Guide: How to Invest in Real Estate Without Buying Property

Another thing to look at is a REIT’s sensitivity to renter demand and the local economy. Ideally, you want to invest in REITs that invest in areas where people want to live and work, and that have a growing population and good job growth.

Lastly, pay attention to REIT fees. Some REITs charge high management fees on property acquisitions and ongoing operations. These fees can add up, eating into your returns over time.

It’s also wise to invest in REITs that pay a decent dividend. The top REITs typically pay quarterly, but some offer monthly payments. It’s worth noting, though, that the frequency of a REIT’s dividend payments doesn’t necessarily correlate to its performance or financial health.