The other day, I was talking to my wife about one of our real estate investments. My teenage daughter overheard and started asking questions about our strategy. I explained that we invest in real estate in order to generate passive income. I said that my goal when I retire is to never have to touch my investment principal. My daughter knows and understands my preference for dividend stocks. They also generate reliable passive income and offer the chance to grow that income if invested in Perpetual Dividend Raisers (stocks that raise their dividends every year). But while dividend stocks are a major part of my long-term strategy, income-generating real estate also plays a significant role... However, my days of being a landlord are over. I don't enjoy wondering what day (or if) the tenant will pay this month, finding repairmen to fix things that seem to break every month or feeling disgusted with how renters keep the place. So today, I invest with various partnerships that are involved with hotels, apartment complexes and houses. Individual investors can also get exposure to all kinds of real estate by investing in real estate investment trusts (REITs). These are stocks of companies that invest in real estate and by law must return 90% of their income back to shareholders in the form of dividends. There are REITs that invest in nearly every kind of real estate you can think of... and others you wouldn't think of. There are plenty that are landlords to hotels, retail space, nursing homes, self-storage facilities and apartments. But there are also some that own billboards, cell towers and data centers. In fact, there are 192 publicly traded REITs out there, which together own $2 trillion worth of assets. | 
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