Good morning and welcome back to The Financial Wagon!
Today we’re exploring one of the most popular wealth-building tools among investors, business owners, and anyone looking to diversify beyond stocks — a space that blends real estate stability with market flexibility. Let’s dive into a topic that’s becoming more relevant as interest rates shift and investors hunt for dependable income.

Real estate is one of the oldest wealth-building strategies in the world, but not everyone wants the responsibility of buying and managing physical property. That’s where REITs and other property-backed investments shine. They combine the passive nature of financial assets with the long-term strength of real estate — giving investors reliable income, inflation protection, and diversification without needing to fix a single leaky faucet.

For business owners and investors, understanding this asset class opens the door to new revenue streams and strategic portfolio balance.

A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-producing real estate. By law, they must:

This requirement makes REITs some of the highest-yielding dividend investments on the market.

For investors seeking steady income, equity REITs often feel more stable; for those seeking higher yield with higher risk, mortgage REITs can be tempting.

REITs offer something unique: real estate exposure without the barriers. Instead of needing tens or hundreds of thousands in capital, you can buy in with just the price of a share.

Because REITs pass through most of their earnings, they often provide:

For business owners, this creates a passive income layer that doesn’t depend on daily operations.

Different REITs cover:

This spreads risk across multiple markets, which helps smooth out volatility.

Many property leases include rent escalators tied to inflation.
That means as prices rise, rent often rises too — increasing REIT income.

Buying and selling shares takes seconds, not months.
No inspections, no appraisals, no closing costs, no tenants.

This flexibility is valuable during uncertain markets when investors may need to shift quickly.

While REITs are the most popular, they're not the only way to invest in real estate indirectly.

You invest in the debt side — essentially becoming the lender.
Interest payments provide steady cash flow, often with defined terms.

Investors pool money to buy or develop properties.
This allows access to large commercial projects that individuals couldn’t afford alone.

Typically available to accredited investors, these funds often target higher returns but come with less liquidity.

Commercial mortgage-backed securities (CMBS) bundle commercial loans into investment products.
These can offer strong yields but require understanding the underlying risk.

Each of these options gives investors exposure to real estate performance without physical ownership.

Even passive investments require due diligence.

Interest rates, occupancy rates, and regional demand heavily influence returns.

For REITs, strong leadership and smart property selection matter just as much as in traditional companies.

For example:

Understanding the sector helps you avoid blind spots.

High yield doesn’t always mean healthy. Look for:

Stable REITs maintain dividends even during downturns.

REITs and property-backed investments blend the dependability of real estate with the ease and accessibility of financial markets. For business owners and investors, they offer a way to diversify, earn passive income, hedge against inflation, and build a more resilient financial foundation — without the operational headaches of direct property ownership.

Join us Friday on The Financial Wagon as we explore another fresh, powerful topic to strengthen your financial strategy!

That’s All For Today

I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙

— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.

Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.