REIT

Relevant_Moose_4856

you cant give a multiple unit build away in the SF Bay Area any more. Rent control, the RoNa and non paying tenants, over blown costs of ALL trades now. I just sold my 8 unit for $990k that was appraised at $1.7M in 2018. Only paid $160K for it in '98 so I did ok, but there wont be any more profits in rent controlled areas and the renters will suffer the return of the slums. The Bolsheviks are getting what they asked for in Oakland, thats for sure. REIT's bought up stuff for a while, but even those kids arent able to dupe 'investors' anymore and are losing their shirts as they find out that it takes more than owning property to be a landlord. Good luck to the Chinese, theyre buying everything they can get their hands on for half price right now in the SF Bay area. I sold everything and moved to Hawaii, ALOHA suckers! Im out!

Relevant_Moose_4856

Ive been buying multiple unit building since the 90's. Most were crack houses in Oakland. Got them all fixed up, rented at market rate and the neighborhoods all came up. Once the RoNa hit and the government said that tenants dont have to pay rent ... and extreme rent control came in, there wasnt enough money to pay plumbers, roofers, electricians etc. I just sold my last building, did pretty well on the sales, but the monthly cash flow had been declining for a decade. Im sure you can all guess who bought them, and most were for cash. Oakland is fast becoming a shit hole again, and the weak a\*\* government has protected slums and facilitated crime. It was a great ride for 4 generations, but forget it now. No one makes money running a charity. The government has thrust housing people onto the private sector. REIT's and their management children bought it up for a while, but I think theyre now learning about the real world. eh, kids

consumervigilante

Net or gross? I'd continue living a modest life with as few expenses as possible-Let's say $50K or less. The rest I would split up between 50% REIT's, BDC's ETF's tracking the major indices with the other 50% in fixed income bonds, bond ETF's, maybe a CD or two & high yield savings account. I don't care about the dividend income putting me in a higher tax bracket. Income is income.

RatherOakyAfterbirth

It’s primarily one hedge fund which is Blackstone (not BlackRock like everyone always mistakes them for).  Most other REIT products are invested in commercial, industrial, and large scale rental real  estate. 

achronos999

I have a REIT that only lets me buy at whole stock prices. I can't reinvest the dividend so it goes to my core position. When I have enough accumulated for another whole price I purchase a single stock with the dividend earnings. It's the only reason for me I would do it

dvdmovie1

Have no current interest in REITs - and imo, it's odd that 90-95% of REIT discussion on here are always the same 3-5 names.

SunRev

What do you think of the REIT called REFI in the cannabis sector? The company name is "Chicago Atlantic Real Estate Finance Inc" on NASDAQ and has been paying decent dividends. What do you think of the REIT called REFI in the cannabis sector? The company name is "Chicago Atlantic Real Estate Finance Inc" on NASDAQ has been paying decent dividends. "The Company utilizes real estate, credit, and cannabis expertise to originate senior secured loans primarily to state-licensed cannabis operators in limited-license states in the United States."

BAGross85

The hedge though, is essentially 100x leverage on an already 3x leveraged Inverse REIT. It’s a 300 bagger if the market downturns.

rackoblack

REIT Realty Income is five stars now, 70% of Morningstar fair value, pays 5.8% div monthly. As passive as you can get. I also own some AMT but that's 80% FV and three stars, 3.4%. I also really like Oil and Gas Midstream. Regardless of pricing, those pipeline rents are getting paid. ET is four stars, EPD and ETRN only three (a hold).

jettNYC

If you locked into a 4.25% interest rate, count your blessings. I get your concept but I think you have completely underestimated both the "cost" of this makeshift insurance and how horribly imperfect the inverse REIT's are over time (and particularly options on inverse REIT's). (1) Heloc's carry an interest cost, (2) options are subject to time decay and a total loss at expiration, (3) inverse REIT's are already imperfect tools that don't claim to track the market beyond a single day and can end up losing value over time due to compounding and volatility even when the direction of your bet is correct (4) the REIT's are based on a housing index that will almost certainly diverge from your local market conditions, especially over time, (5) you're distorting that further with the premium and bid/ask spreads on those options, which may be excessive since such options see only light trading. Hypothetical: I didn't do much searching, but the only inverse REIT I could quickly find with January 2025 options (to cover you till you sell in 2025) is DRV, a 3x inverse REIT. Share price currently $46.49. These can drop quickly as you can see between 10/25/2023 ($71.18) to 12/28/2023 ($33.30). If you look at almost any long-term chart of these leveraged inverse ETF's they all appear just as an insidious and continuous drop in net asset value as they are not designed to cover any strategy longer than 1 day! From the prospectus: "For periods longer than a single day, the Fund will lose money if the Index’s performance is flat, and it is possible that the Fund will lose money even if the Index’s performance decreases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the Index gains more than 33% in one day." So your bet can be 100% correct, yet due to a compounding effect and other factors DRV might now come anywhere near reflecting 3x the market loss, and might in fact STILL be down since (another prospectus warning): "the volatility of the Index may affect the Fund’s return as much as, or more than, the return of the Index." With all of that said, with DRV share price at $46.49, and the highest strike price available for Jan 2025 at 49, with those calls priced at $990 each (e.g. $9.90), you buy 10 of them and there's your $10,000. Say the real estate market crashes. In order for you to get your $100,000, the share price of DRV would need to jump to 149 (that would leave intrinsic option value at $10,000 per option x 10 = your $100,000). That's 3x the current net asset value of DRV. Ignoring all of the issues with the compounding and volatility, let's pretend the fund can indeed track the market over extended periods (it can't). That would imply the Real Estate Select Sector Index (the index to which DRV offers short exposure) would need to drop 100% to zero, a total wipeout of equity values, and then you'd have a lot more to worry about than your $100K equity. So of course, absent nuclear war, that's a near impossibility, made even more impossible by the compounding and volatility issues that affect the index over time, with no guarantee that DRV has increased at all from the time you bought those options. All the while paying mortgage interest on a Heloc for money that may not be around for long. "

ShortUSA

Locking in your appreciation for the term you know you'll have the house isn't a bad idea, but the problem you have is that real estate fluctuations are local. You have to be very careful as to which REIT you select, and there might not be one very aligned with your home. The REIT will have to consist of homes, rather than business real estate. It will have to be a real estate oriented rather than mortgage, etc. And then you have to find the inverse, it if it's an ETF, maybe an option, etc.

Tandittor

It's not a bad idea, make sure the ETF doesn't suffer from volatility decay (look it up if you don't know what it is). Inverse ETF and ETNs usually do. So, I'll suggest puts on REIT ETFs instead, unless you are highly confident that you can time the pivot down to the month. Make sure the ETF you're using does what you think it does. Look into the composition.

BAGross85

Yeah, but an index fund/etf won’t return my equity if the market crashes. Leverage (calls) on Leverage (REIT) will return my equity

leavethemwithnothing

I haven't actually received anything yet - just setting this up. But my limited reading made it seem like REIT's dividends never qualify because they're considered pass through income.

ManicMarket

I could be wrong, dont depend solely on comments. There is a difference between a dividend and return on capital. A CPA can add more clarity, but qualified dividends have do with holding period (have you held the stock long enough). Your issue with a REIT may be that you are receiving a “return of capital” and not a dividend by definition.

Iaokim

CTRE is a long term senior care REIT that I like. I got in about 2 years ago when I sold O for a big profit. I'm up 50% on CTRE. Hindsight is 20/20, but I still think it is a good value. I am also into AMT, its not long term care its towers but still a great value if you are looking for alternative REITs.

tigerkat2244

I have long term care facilities REITs. Seems that is a good choice. Didn't know there was office space REIT. Can't imagine buying such either. It would have been amazing having it to sell as soon as Covid hit.

thergoat

My friend, until the last three years HYSAs had at most ~.9% yield. I think the best CD I saw pre-covid was paying .85%. My savings account at a brick and mortar never paid more that 0.05%. Now, today, HYSA’s pay at most 5.6% (last I checked was about two months ago for a CD). Now, that’s a great guaranteed return. But REIT’s give away 8-12%, typically. Using a 10% return, you would have doubled your principle a few times if you reinvested from ‘94 to ‘24, even with the share price being stagnant. 

Perfect-Soup1838

I was an analyst during the Golden years of cheap money, 2005-2008. I graduated uni in 2005, went to work with Morgan Stanley in Vegas. If only people knew how shady it is or was, I don't know anymore. I stopped working in 2008 but I still have friends that work there. I strat or life goal right now is buying a multi-family unit like a dual plex or 4plex so I changed my strats to 5% bonds and 95% REIT. I don't put anymore money into VOO.

GrouchTheMongolian

i used to be an analyst too. shady shit goes down on wall street. curious though, whats your life strategy? is it just "75% of my money in voo and 20% into a REIT. and 5% tax free bonds"? ive been meaning to restructure just for shits and giggles and the funny thing is that if people knew what worked it would be the strategy for everyone. and that strategy is get a lot of money. with that being said. is that 75% yadda yadda yours and how is it working out?

scientropic

It’s interesting … it’s not really a dividend stock fund as such; the option strategy overlay is sort of a way of of converting capital gains into income. The mortgage REIT and BDC areas can actually come closer to meeting your income target though … 9%+ yields aren’t unusual in those spaces. Just to cite a couple examples, in the BDC space ARCC has a current yield of 9.4%, and in the mortgage REIT area NYMT yields 11.7%. Bear in mind that equity yields are conventionally stated in trailing terms … past dividends divided by current price. Future dividends are unknown, so that’s about the best you can do.

curious_mj

Yeah probably a gamble. Better to do with some REIT ETFs

curious_mj

You’re probably right. I have a few tax loss harvesting suggestions in Mezzi and Tesla was one of them that kinda made sense given all the bad news. Others were some REIT ETFs. Trying to offset some gains I took on NVDA.

Dr_Spaceman123

Not following your logic on how that leads to a housing crash. But if you want to bet against housing in Florida I would try to find a public REIT with a significant concentration in owned single family residence hones in Florida as they would correlate to what you are looking for. If you are betting on insurers you can short small hurricane insurance businesses in Florida based on how hurricanes are forming this season and thinking they are going to pay out a lot to consumers. A lot of details to look into, and risks to consider, but if you are convinced about this there are ways to bet this.

RBControlsGuy

If you couldn’t already tell by almost every post trading 0DTE or >1 month DTE this isn’t the place for proper investment advice. However I will leave you with some; purchase MREIT or REIT, they pay good dividends every month. It won’t make you rich quickly like a huge play on 0DTE but it also won’t make you broke. Invest in companies that have stable financials or are growing modestly (Cash flow, Profit… etc) and sell covered calls for a few percentage points (3-10%) year while collecting dividends.

consumervigilante

What's the buy in fee? Is that deducted from dividends collected or is that 2% of the initial $500K? I have a dividend portfolio I put together & manage on my own in a brokerage account. It is made up of a mix of REIT stocks, BDC stocks, dividend aristocrat & king stocks (those paying div's over a 25 to 50 year period) as well as ETF's tracking the major indices along with a few covered call ETF's. Looks like the fund your FA is talking about is an annuity. I stay away from annuities. I'd read the fine print on restrictions-how much flexibility you have with accessing your money & so on. Also keep in mind your dividends are taxed as regular income. Part of putting together a portfolio is putting some of your capital into instruments with better tax treatment. Some covered call ETF's offer those like the NEOS funds. Some bond ETF's pay dividends that are exempt from both state and federal income tax. I'd do more research. There are surprisingly some good resources on Youtube to learn about dividend investing. Armchair income is one of them. There are several others. But please read the fine print before you make any decision with your FA.

Flrg808

For a stock that doesn’t change its div value much, I agree, but for something like a REIT where its distributions vs a dividend, it could vary pretty wildly. Looking at the TTM that isn’t clear

HeyJettRink

Interest rates are 90% of the reason it has gone down. They have a great management team and an excellent CEO. It’s an REIT, it will never be high growth, but they do have an excellent dividend. If anything, you should be happy that the price is dropping so you can buy more if you believe strongly in it. I’ve been in a few times, currently pursuing a more aggressive approach, but likely will diversify some back into Vici.

R-R_turfio

GMRE - a medical REIT with 10+% divs

JR_LikeOnTheTVshow

ILPT. Bought this REIT right before interest rates started to rise. Down 90%

chris-rox

Try a REIT like O Realty ($O) 5% fixed income paying off monthly.

Frekingstonker

We want to take it over not be common stock holders. How about a REIT?

DeeDee_Z

Anything stocks, and anything bonds. If you want 3, pick a REIT. Boom, done.

Former_Pair1589

Oh Really??? So you think that market currently reflects in impending debt wall? Even if you are correct on REIT and regional banks, that’s just the first derivative. As I said, what happens when debt markets collapse and industries can’t obtain loans to continue business, let a lone generate 3% GDP growth through expansion?

Kindred87

I'm bullish. The economy is still strong on fundamentals, consumer confidence is still growing, disinflationary measures are struggling to constrain growth, unemployment is stubbornly low, and retail investors have been showing increased appetite for risk from what I've seen. The feels and the reals both point to good performance on the whole. Banks reporting below expectations in this financial environment doesn't surprise me at all. Much like an REIT concentrated in commercial assets reporting below expectations wouldn't surprise me or signal a market-wide concern in my eyes.

marketminion

Good question, probably best way is to look via troubled REITs? there should be something on lenders...run lender extraction on all troubled REIT reports, rank the lenders by mentions, should be a good screen, will look into it..

Gravybees

It’s capitalism.  A correction will occur and life will move on.  I’ve lived through many such corrections :) Banks with high exposure may take a little longer to rebound, but unless something catastrophic happens there are a lot of buying opportunities in the banking and commercial REIT sectors now.  I have to imagine that ten years from now the landscape will be different.

NoonGlory

I recommned you read a few books on investing before you start and remember, only invest what you are able to lose and live without. Many great books out there, a simple google search will advise you of the best ones. Investing is a serious matter and should not be treated as 'I'm gonna ask strangers for investing advice and go with it' type of deal. That being said, I'd start with (more-so) risk-averse EFTs : Some of the top EFTs to consider include the Vanguard S&P 500 ETF, which tracks the performance of the S&P 500 index, the iShares Core MSCI Emerging Markets ETF, which provides exposure to emerging market stocks, and the Invesco QQQ Trust, which tracks the Nasdaq-100 index. Additionally, the SPDR Gold Shares ETF offers exposure to gold, a traditional safe-haven asset, and the iShares TIPS Bond ETF provides exposure to inflation-protected US Treasury bonds. These are just a few examples of the many EFTs available, and it's important to carefully research and consider your own investment goals and risk tolerance before making any decisions. You can also **research** below EFTs which have upside potential: Vanguard S&P 500 ETF iShares Core MSCI Emerging Markets ETF Invesco QQQ Trust SPDR Gold Shares ETF iShares TIPS Bond ETF Vanguard REIT ETF iShares Core U.S. Aggregate Bond ETF Vanguard Total Stock Market ETF iShares Russell 1000 ETF iShares iBoxx $ Investment Grade Corporate Bond ETF iShares Edge MSCI Minimum Volatility ETF Vanguard High Dividend Yield ETF iShares Edge MSCI Multifactor ETF Vanguard FTSE Developed Markets ETF iShares Edge MSCI USA Momentum Factor ETF SPDR S&P Dividend ETF Vanguard Emerging Markets Government Bond ETF iShares Edge MSCI USA Value Factor ETF iShares MSCI EAFE ETF iShares iBonds Dec 2023 Corporate ETF

ProfitableFrontier

It seems weird, but find a way to look at it in terms of something other than money. Look at the shares themselves or what they represent as your ultimate goal. I have (for example) a portfolio of REITs. After doing due diligence and researching good companies, I came to figure out how many square feet or acres the REIT owns and then, ultimately how many square feet per share. My goal, in that portfolio, is to grow my square footage... If the price goes down, I'm mentally seeing a sale and really want to buy more. I don't check the daily variations because I'm not buying every day. I don't track the daily price of salmon at the grocery store either, but if it's on sale when I'm shopping, I might stock up.

stocks-mostly-lower

As retired landlords of 15 years of experience self-managing our properties, we buy REIT ( Real Estate Investment Trust) shares. They’re nice and quiet. They sit in our investing account and give us dividends every month or quarter. and to top it off, they never ever destroy our property, argue with us, and are never late on the dividend, versus the rent.

Inside_Western_2499

I’m not pumping it, I’m posting a short interest play in a short interest sub. The stock currently sits at 42%, for a REIT.

Ceyenne18

I'm going to get burnt again in 6 hours when Asia market opens. Holding REIT stocks :(

dvdmovie1

While not a REIT, I'd rather buy heavily real estate oriented BX instead. I would maybe buy a REIT preferred if it was trading at a substantial enough discount. There's not really a REIT that I have any interest in - too many people buy REITs purely for income w/o any thesis about the business itself. Not a REIT but real estate: I'd maybe buy a little HHH in the mid $60's nicely under Ackman's (who owns 38% at this point) recent purchases at $72, but if I did that it would be a little and that wouldn't be that high on the shopping list.

postempirical

not a recommendation from here but still, f'ing IIPR from years ago. I'm a casual and found it after 30 seconds of google searching around REIT... saw the combination of cannabis and real estate and thought "can't lose!" Only after making the buy did I do another 30 seconds of 'research' pulling up that it'd just been named by Cramer as a buy and knew I was f'd. arghhhhh

Inside_Western_2499

With rates high, shorts are intending on the REIT to fall further. With enough intention this thing could go 13 to 16, but it’s a hard task to convince gambling addicts to buy a REIT with 13% dividends.

Bill-Imaginary

CPI is gonna have huge earnings, P/e multiple is gonna REIT a dividend

AICHEngineer

It really really depends. A REIT is truly passive. You pay the expense ratio and you get exposure to the risks and whims of real estate and that market and such, depending on the characteristics of the REIT you buy. Property management is hustling. You are a business owner in that regard. You deal with more complex taxes, you have to physically maintain the property. It's certainly not passive, or you're paying someone to act as proxy to repair, or even paying someone to manage the properties for you. I don't own properties, but there are subreddits for people who do if you wish to hear what they have to deal with and whether that level of hands on work is worth it to you.

wsb-legatus-goodman

> Apartment Income REIT stock rallies on Blackstone buyout $AIRC

Bons4y

Probably would be easier to buy a lumber REIT. Companies do this with massive amount of land and rotate trees in different sections and sell them for lumber once they’re grown

skilliard7

you can also just buy a farmland REIT like Gladstone land and have someone else handle all the farming and land management for you

stocks-mostly-lower

Weyerhaeuser (WE ticker)is a huge lumber producer, and is a REIT. Most people don’t know that. If you want to invest in trees, buy some of their shares. It doesn’t pay a very high dividend, but it will get you a bit of money and you will definitely be living your dream. Right now the share prices about $37 each.

VegasBjorne1

I would focus more on Memory Care, Hospice and Assisted Living REIT’s. People are living longer, but not necessarily healthier or independently. The mind is going faster than the body, and barring some breakthroughs (Eli Lilly has something in the works) then caring for dementia will be a growing business.

CorneliousTinkleton

OP probably meant APLE, a hospitality REIT

Kaymish_

If you want exposure to real estate but don't want to deal with the risk of a rental buy a REIT. Realestate only returns what it does because it can be levered beyond any other sector would lend.

Pastor_Dale

Ok. So I also own rental properties. It is a hassle at times. Your screening process isn’t always perfect and you’ll never get a tenant that respects the house like you do. So you can pay someone to do it. A property manager or a property management company. Or like others have said, if you want real estate exposure you can also buy into a REIT.

RhumHamAndPineapple

If you want exposure to real estate without being a landlord you could look into REIT.

Sexyvette07

It's going to be a lot less work and risk to just invest that money into a REIT and rake in the dividends, rather than buy a rental property.

Key-Mark4536

The wash sale rule applies across account types, yes? So if I sold something in my taxable account at a slight loss and bought the same in my IRA, I’d just miss out on that tax benefit. Can’t claim it now because it’s a wash sale, wouldn’t get it later because it’s an IRA.  (Main reason I want to “move” it is because it’s a REIT. And it’s a small large loss, so I’ll probably do it anyway.)

WinningTocket

1. Your taxes will be different. Your expenses will be different. You need to adjust your option strategy to account for that. This, for most people in my opinion, is sufficient reason to *not* switch. The cost of trading is not zero even if the broker charges nothing as there are regulatory fees and the tax benefits of holding qualified dividend payors does not apply to options trading in any way. 2. There is a threshold for portfolio growth that is not realized in smaller accounts. This means that the most effective means of growing the portfolio is through labor such as a job etc. Because of this the effort undertaken is usually negative to the point of frivolousness; in the case of having $1,500 you would be looking to make perhaps 10% (after tax) on the year which you can make in less than a week at a job. This is important because it creates a frustrating gap between "good performance" and "useful performance"; you really don't feel too great about making $12.50/mo. in a risk adjusted profile spending at least 2 hours a month doing it knowing that you also cannot touch the money because doing so only reduces your portfolio value. The math basically boils down to, in most places, working for far less than minimum wage for no reason. 3. You have to actually have discipline. The active trader and the passive trader have very different emotional and psychological profiles. Not everyone who is a passive trader can trade actively successfully and vice versa so you may discover that even though the money is there it's not money you want. Active trading is goal oriented trading so you need to be able to understand exactly what you think will really happen and generate meaningful theses. This is important because when moving from dividends to options the first inclination is to try to trade options on dividend bearing stocks. This is a bad idea. The reason is that the thesis and the dividend don't align; if your goal is to make *n* in premium or sale and incidentally collect the dividend if you cannot get out of your position that means that you have made an error in your thesis because the sole reason you put on the trade is to make it out without assignment. The key here is that dividends don't make you less wrong. Remember, by nature, you're now intermixing two tax problems, you're likely setting yourself up to never hold for 6 months so it *never* becomes a qualified dividend, the thesis of trading on the options runs counter the thesis of holding for the dividend. It gets to be very messy when you start putting it together because you go from something you understand to a dualistic construct that does not work anywhere near what your historical positioning was. You've essentially turned 180 on your old strategy trading something where you kind of wish there wasn't a dividend because then your premiums would be better, rather than worse, if you're selling on the short (assigned) side. Basically in stocks where there are no dividends it's easier to say that the system is weighted more equally meanwhile if there are dividends long is heavily weighted against short. All that to say that it's improbable you'll have a good time with this. You have $1,500 so your max for 100 shares price is $15/share which means you're going to be highly concentrated in probably a REIT if you go for something with dividends and those can be illiquid. I won't touch on liquidity but down in that level liquidity can be very difficult to come by because of the dividend nature of the whole thing to begin with and the fact that REITs don't really trade well and are stably priced. Your other option of going long (calls) has the risk of you simply losing all your money because there's a good chance you won't be going long on something you can afford.

Character-Bench-4601

I keep everything invested, but with different assets in different etfs. Total US, total international, large cap US, US value, small cap value, emerging markets. That way if US growth stocks crash I'll be able to rebalance with whatever etfs dropped the least. If I wanted to push it a little more I would buy etfs that are less correlated such as international small caps or REIT.

MomentSpecialist2020

Look at REIT’s in your IRA. WPC is a good example. There are many to choose from.

AP9384629344432

Why stay in 5% cash when I can buy a highly levered (as we know, debt juices equity returns) REIT with strategically vital assets (hospitals with bat infestations and sewage overflow) paying me to wait (13% yield with no signs of cuts). Not to mention a management that is constantly on the move to keep watch on the business (with their 3 private jets and vacation homes). And with 5 interest rate cuts on the horizon, I expect some awesome refinancing deals and the junk credit rating to be lifted soon.

AP9384629344432

With deteriorating Chinese economic data and domestic coking coal pricing, I think margins US coal companies will achieve are going to be atrocious in the near term. No bridge collapse is going to tighten supply sufficiently. And I decided Australia is too risky of an emerging market so I'm worried BTU gets nationalized. Accordingly I have sold all my shares of HCC, BTU, and AMR (all in my Roth IRA). But to keep my cash position from getting too low, I instead bought an undervalued REIT with a whopping 13% dividend yield (MPW) and an absurd price to earnings ratio. I also opened a position in ROKU because it is criminally undervalued on a price/innovation basis, and am debating buying SOFI for exposure to the stadium market as well as PLTR because I like salad, especially word salads you find from management and Twitter bulls.

MFERMION

Swensen's recommendation is 30% domestic equity, 15% developed equity, 5% EM, 20% REIT and 30% fixed income. As academic research has shown, diversification is the one free lunch offered by the markets. As he recommends, I only use the lowest-cost index funds. I personally allocate less to fixed income because I have a pension.

Lingweenie2

IIPR stock is the only cannabis-like company I’ve found that seems solid. (They do not grow themselves. They are a REIT that rents buildings/properties to growers.) They seem to be growing quite well and as time goes by I expect them to continue. Doesn’t seem like they have many competitors with their business model/strategy either. They would be my top choice. And I own a good chunk myself, admittedly.

Happy_Dance_Bilbo

Some people approach important things in their life like learning to ride a bike by reading a book. Investing **is** reading books about investing, and reading and learning how to read financial reports. But it's also learning to continue to make good choices when you're stressed, when you're stock or fund or REIT loses 30% of its value in a week, learning to be emotionally stable, and make sensible decisions and ignore your panicky emotions. It's learning not to get overconfident, when some risky stock you foolishly chose gains 50% in 3 days. Then there's the times, where you get messed up by fear of missing out on a "Sure thing". A substantial amount of investing success is regulating your own emotions, and staying calm. My point is that every investor makes bad decisions at some point, in some things in life you fail your way to success. If you start investing now with a few hundred dollars, and you make a foolish decision, (and you are almost guaranteed to make a few) and you lose 50 or 100 bucks, it's painful but it's not the end of the world for your financial future.If you wait to invest when you're 38, and you've gotten an inheritance from somewhere,or some other windfall, and you lose $50,000 or $100,000, that is a much more serious consequence to your financial future. Just like you don't want to wait to start dating until you're ready to get married, you don't want to wait to start investing until it becomes critical.

hungryhippo3-14

I’m 28 years old, live in the US, earn $66,000 per year, and have been investing for about 6 years. I have no debt and about $145,000 invested (saving for retirement). I have approximately 70% in a Vanguard International Stock Index Fund and 30% in a Vanguard REIT Index Fund. My returns have been pretty mediocre over that time, much lower than if I had invested in an S&P 500 Index Fund. I invest mostly in international stocks because they have a substantially lower CAPE Ratio than the S&P. The CAPE Ratio has been a relatively reliable predictor of long-term returns in the past. I am just questioning whether I should stay the course. In theory with the current high prices of US stocks, international should overperform them in the future. However, I have just gotten tired of my investments underperforming. Any advice would be appreciated.

WickedSensitiveCrew

Of course software scale is unlimited. Was just saying building something sounded like a REIT. But I totally understand REITs are boring and aren't really growth companies. There just seems like limited discussion about other stocks on this sub that even when I bring up REITs it goes back to AMZN/MSFT.

Sexyvette07

Depends on your definition of undervalued, as PE doesn't tell the whole story. My list consists of Intel, Google, Meta (yes, it's undervalued even now), John Deere, Caterpillar, Pfizer and a slew of oil stocks (such as OXY/SWN, XOM, VLO, HAL, and possibly MPC/MRO). I'm bullish on tech, energy and telecom. Tech is obvious, as it's seeing impressive growth, but the sector IS due for a correction at some point. Intel has by far the biggest upside here. For the massive growth heading its way, the market sure as hell isn't taking it seriously, which presents a rare and great buying opportunity in an overbought market. In the next year or two, people are going to be kicking themselves for not buying it. Oil will continue to rally until at least October, and possibly until the US election. Gas prices are always a hot button campaign issue, so it's hard to tell what's going to happen the closer we get to January. I will reassess my energy holdings in September, but until then, my plan is to hold. Historically, oil has outperformed the S&P in election years, so we will see what that holds for a sector that's already undervalued. In the long term, telecom is expected to add an expected 5-7 billion new 5G connections by 2028-2029 based on infrastructure expansion. In addition to buying the beaten down telecom stocks when they were very low (im up 15% or so already on that alone), I've also bought a few hundred shares of Ericsson, who will be an integral part of 5g infrastructure. It also doesn't hurt that these stocks have a hefty dividend while they develop. Once the tech sector sees a correction, I fully expect the money to get moved into energy. REIT's could also see a pop depending on what happens with the rate cuts and economy.

WickedSensitiveCrew

> building to rent out to their customers who are searching for gold. That sounds like a REIT. Aren't there already data center REITs that already exist? That are building data centers? If this is a booming sector sounds like those companies would benefit too despite not being as exciting as AMZN or MSFT.

bshaman1993

What is the one best REIT to invest in right now?

Chubby-Panda

Hello everyone, I am 37 fairly new to this. I have currently have 401k, Roth IRA, HSA and regular taxable brokerage account. My portfolio consist of mixtures of total stocks, bonds and REIT Etfs. Bonds and REIT Etfs are roughly 20% of my portfolio spread out evenly through all the accounts. I am reading up how Bonds and REIT Etfs should not be kept in a taxable accounts because the dividend will be taxed. I am a couple of questions on what my next step should be Should I sell all the bonds/REIT Etfs in the taxable brokerage account and repurchase them under my HSA/401k/IRA? or Should I just leave whatever bonds/REIT etfs in the taxable account but stop buying more in the taxable account? My concern is that bonds/REIT Etfs are at a loss right so I don't know if it is a wise move to just sell them just to repurchase them in a non-taxable account.

yensteel

What about REIT? Still good?

consumervigilante

Your still a child basically. You have so much time. Just invest consistently. Remember this: Time in the market is greater than timing the market. Every month invest. Pick some index funds tracking the S&P, Nasdaq & Russell 2000. Consider some REIT stocks or better yet just buy VNQ which is a REIT ETF. That will get you some exposure to real estate. But no matter what pay yourself first-meaning invest every month. Don't worry about price fluctuations. Pick a course then STAY the course.

NotDrewBrees

You’re thinking more of REIT’s than MLP’s here. MLP’s don’t have the 90% distribution rule that REIT’s have to abide by. MLP’s don’t have those minimum distribution requirements. This is a key advantage of MLP yields (alongside tax treatment in the MLP K1’s but I’m not gonna get into that here). They’re high right now because many public investors have blacklisted energy investments unless they have high ESG standards. Most don’t, so the sector is under-invested right now. Energy firms are all throwing off tremendous free cash flow now that they’re so lightly levered, and MLP’s don’t have a huge number of infrastructure buildout projects that would require huge capital. Ergo, they can afford to pay out juicy distributions. The dividends that they announce are well within their free cash flow (< 80% in many cases), so it’s really more of an error on investors’ parts not to scoop these MLP’s up. LNG export capacity, on the other hand, is currently underway, albeit at a really glacial pace. It has infamously always been a ‘3-4 years away from today’ prospect because gas production keeps growing faster than these export terminals can get built out. But firms like PAA aren’t the ones undertaking LNG export terminal projects. That’s mostly Cheniere Energy.

Key-Mark4536

Same goes for [Business Development Companies](https://www.schwab.com/stocks/understand-stocks/bdcs) (BDCs), which are some combination of lender, investor, and incubator for micro-cap companies. For both REIT and BDC the upside is that the business itself doesn’t get taxed, but you as the owner do. 

Ok_Swimmer634

I am convinced most of the articles are written by the companies themselves. I have seen essentially the same things said about a REIT I am in, $O, in three articles in the last two days. Boom, the best day of trading in the two months since I first dabbled in it.

theusername_is_taken

Why tf are REIT’s pumping, did Nancy get the leak that the rate cuts are coming 

Tom_Traill

We have a Cell tower on our land, and the lease is owned by a Crown Castle (CCI) They are a REIT. I've been studying them since 2007. Crown Castle reorganized as a REIT in 2014. Prior to that, they were a publicly traded company like Apple. In my opinion Crown Castle became a REIT because a REIT is not required to report financial data in nearly as much detail as a publicly traded company. I believe Crown Castle's business strategy is to hide their profits from tower landowner's so they can cry poor when they are renegotiating their leases. When our lease was up for renegotiation we sold a permanent easement for the site for $750K. That is roughly 3-4 times any other deal with a private landowner that I've every found. Finally, to address your question, some REITs (like Crown Castle) choose to operate as a REIT because they can hide their business practices and profitability (or lack of it). I would be careful with REITs, but Crown Castle is a different animal. A very evil animal.

Slaxle

Can anyone recommend any REIT ETFs for me to look into and research? I want to add one to my portfolio. I have $700 to invest and I don't want to put it in Tech or total market ATM because everything is currently so high. So I was thinking it may be a good time to add a stable dividend investment to my portfolio.

Kicksavebeauty

>Because, don't you know.. You pay the ceo more money and the company can't afford to form a monopoly.. Simple Jack, tell that to Loblaws who pays their CEO outrageous amounts and still owns almost the entire supply chain from start to finish. They are a complete Monopoly that control food prices in Canada possibly Global. Governments do nothing. Look at all the Sugar Companies they own. The Canadian branch of the Weston family currently owns or controls over 200 companies. They have Family Branches in the USA, Ireland, and the UK. How many companies do they own?? The list of Loblaws companies seems to keep growing: PC FINANCIAL Choice Properties Real-estate Investment Trust (REIT) Chains: Atlantic Cash & Carry Atlantic Superstore Atlantic SuperValu Axep C Shop Cannabis Dominion Entrepôts Presto / Club Entrepôt Extra Foods Fortinos Freshmart Holy Smokes Tabacconist L'intermarché Loblaws/Loblaw Great Food Lucky Dollar Foods Maxi/Maxi & Cie NG Cash & Carry No Frills Osaka Market Pharmaprix Provigo T&T The Real Canadian Superstore/Loblaw The Mobile Shop Theodore & Pringle Opticians Superstore Real Canadian Liquorstore Real Canadian Wholesale Club Red & White Food Stores SaveEasy (formerly Atlantic SaveEasy) Shop Easy Foods Shoppers Drug Mart/Shoppers SuperValu Valu-mart Your Independent Grocer Zehrs, operating under the Zehrs Markets, Zehrs Food Plus and Zehrs Great Food banners Brands: President's Choice No Name Exact Blue Menu Joe Fresh J± (electronics) Teddy's Choice PC Splendido Bella Tavola PC Premium Black Label Joe Pet Catz & Dawgz PC Organic The Health Clinic by Shoppers Life Labs Life @ Home ---London Branch--- Allinson Argo Corn Starch Aladino Peanut Butter Burgen Blue Dragon Capullo Dorset Cereals Dromedary cake mixes Elephant Atta Fleischmann's Yeast High5 Jordans cereals Lucky Boat Noodles Karo corn syrup Kingsford's Corn Starch (North America) Kingsmill bread Mazola corn oil Ovaltine (except in the United States, where Nestlé owns the brand) Patak's Pride Ryvita Silver Spoon Sunblest Thai Lotus Pastes Tolly Boy Rice Twinings Subsidiaries AB Agri Ltd AB Enzymes - an ABFI Company AB Sugar AB Mauri, bakery ingredients Abitec Corporation - an ABFI Company Abitec Ltd ACH Food Companies (AC HUMKO from 1995 to 2000), an American subsidiary of Associated British Foods, previously part of Kraft Foods from 1952 to 1995. ACH Food México Allied Bakeries - a division of ABF Grain Products Ltd Allied Mills British Sugar Frontier Agriculture (50% joint venture with Cargill) George Weston Foods G Costa: sauces and specialty foods Illovo Sugar Zambia Sugar OHLY - an ABFI Company PGP International, Inc. - an ABFI Company Primark – known as Penneys in the Republic of Ireland SPI Pharma, Inc. - an ABFI Company Stratas Foods LLC, a 50/50 joint venture between ABF's American subsidiary ACH and fellow American food corporation Archer Daniels Midland Wander AG Westmill Foods

No_Communication8613

Loaekh told you the truth. I did get SMFL today just because someone mentioned it and I saw high volume pre-market. It's under a $1 and at best it will get above $1.2 . I actually looked at data and knew it would be a minor raise or a loss and I bought it anyway. Over a million in volume pre-market made it seem sure fire. I also bought AKBA today because 3/27 will be the date their new drug is set to be approved. I honestly wouldn't even get a penny stock if you want a long term investment. Look for something you're interested in... you are going to have to get a lot of info on these stocks, so you want to make sure you are reading up on something you are interested in. For a super noob, I recommend SPLG it's an etf that follows the SP 500. You definitely want a few growth stocks. There are some REIT that are cheaper with higher dividends like AGNC but don't fall for the high yield trap. It pays out dividends monthly, but the stock has been going down for years.

Opposite-Layer-6139

My pleasure. If you do find a good REIT that does returns of capital, the only time it makes sense in owning is in a retirement account, where cost basis means nothing. I wish you the best!

MFERMION

Easy answer: Total market index. Forget about all the growth/value, big/small, dividend, sector, etc. funds--they are all marketing for people who like flavors and many choices--not for long term investors who wish to benefit from the advantage of owning equities. International index funds are good and should be part of an asset allocation. REIT index funds are distinctive as the late David Swensen persuasively describes in his book.

Bburky788

There are platforms where you can purchase notes, just search in Google for "mortgage note exchanges" you will see them that way. Yes there are REITs but you don't own the mortgage notes. If you ever wanted to use your notes as collateral for any type of investment, a REIT investment isn't going to cut it. You have way more control by being the bank and having the control.

Gas_Grouchy

Like most answers it is... Depends. $22k may seem like a mountain to you now but anyway it can increase your income is going to be so soooo much more beneficial than any investment that's reliable. If diversification is your goal, REIT's / RE seems to be a big portion of the puzzle that's missing. Not sure where you live what you like etc. etc. but buying a 3 bedroom house and renting 2 rooms could significantly effect your expenses which would be a great investment long term. One of the biggest savings in a home purchase isn't even the mortgage Vs Rent but that your mortgage payment stays the same. You also just have a ton of options from there for improving the investment etc. etc. Don't get me wrong its a little like a part time job collecting rent from roommates but it can be quite fruitful.

Cruian

>It's the top 100 or so company's that are in the s&p. No it isn't. It is the top 100 non-Financial, non-REIT companies that trade on the Nasdaq exchange. Apparently 15 of QQQM's holdings are not in the S&P 500: https://www.etfrc.com/funds/overlap.php QQQ won't hold companies that trade on the NYSE. Strange thing to place a bet on. >It's more risk being that is very heavy in tech but I believe it is worth it at our age. Long term tends to favor old boring stuff, stuff that gets placed in the complete opposite corner of QQQM: the small and value.

FFnFinanceAcct

My most regarded financial mistake: I full ported PK  at ~6.50 / share during Covid lows week, 4 year anny tomorrow, because I thought it'd be a forever hold (REIT, high dividend, choice Hawaiian & urban hotels) and then sold a few weeks later at 8. It did go back to 6 a few weeks later, but I had moved on to other regarded shit.  The actual yield would have been ~15% at my avg price, and between that and selling FD covered calls, would have probably been a crown jewel asset, generational wealth stuff.  Haven't thought of that error in a while, but saw them mentioned in a CNBC divvy article.  On shares no less, my pussy paper hands constitutes a mental disorder. 🤡

PainfullyGoodLooking

It’s a commercial mortgage REIT focused on the cannabis industry. I have been holding for a couple years now and the stock has done absolutely nothing so I’m hoping OP is right

Ashamed_Photograph84

Jazz, Trulieve, Curaleaf. Another interesting one is the REIT Innovative Industrial Properties (IIPR)

IAmANobodyAMA

It also has REIT even in the right order. Bubble confirmed

Tacocats_wrath

Not crazy about Tesla. I can see the appeal. Just not my thing. Other then that, great companies. My concern is not qualities of companies, more so sector concentration risk. A lot of technology and semi. I bet it's performed like an absolute juggernaut though. I also think there is room to run here still for sure. That being said, maybe look into diversifying into some other sectors with some earnings. The rally is starting to broaden out into other sectors. Financial, industry, and perhaps even a small allocation emerging markets or a turnaround play on REIT as a comeback play.

Tacocats_wrath

I think I have put together a solid portfolio. What do you think. Nu 1335 shares = 15.6% Isrg. 62 shares = 23.6% Visa ( CDR's on the NEO exchange ) 620 shares = 11.9% EQB ( on the TSX) 301 shares. = 17.2% AP.UN ( on the TSX) 374 shares = 4.4% BN (on the TSX) 126 shares = 4.9% AJG 45 shares = 10.8% Meli 4 shares = 5.7% BNS ( on the TSX) 147 shares = 6.9% (gigidy gigidy alright) I have exposure; Emerging markets through Meli and nu. Insurance through AJG Banking through EQB - BNS - NU - visa Medical through ISRG REIT through AP.UN Brookfield corp is exposed to damn near everything. Portfolio dividend is 1.5% I have a few companies that I want to add. Become a little more diverse. Valuations are a bit steep on some. Novo Nordisk, CSU, vistra group, Accenture, trane technologies Thoughts.

FacetedSideOfTheMoon

I'm in a similar situation with a REIT my grandma had. Funny thing is fidelity shows it as a normal ticker on nights/weekends and w market open its a series of numbers and untradable. I'm concerned I need to get rid of it eventually so as to follow the 10 year rule since I inherited this just a couple years ago. I'd suggest calling fidelity but not getting rid of the stock until absolutely necessary because of that dividend.

CompooterMadeMeDoIt

bonds you buy bonds, in particular for the long term, to hedge against the volatility of securities and to gain a fixed income source. a bond pays a steady rate over the life of its bond and then returns those funds at the end of the bond period in full. so you get all your money back plus you earn the return rate on a fixed income basis. its pretty typical for a retirement account to hold bonds now if youre doing this yourself on some app you probably need to buy an ETF or something of bonds, which do operate differently. BND but like its long established financial advice that some mix of securities and bonds long term is the play. whether thats 80/20 or 70/30 or 50/50 any financial advisor worth anything would tell you to own some fixed income in your retirement account you also would likely own some REIT, which is another kind of real asset. and the reason you own a reit is because they tend to be inflation resistant. so again it hedges you against the downsides of inflation.

Perfect__Crime

So Eqix is to blame for my loss in REIT lol 😂 bastards!

Kingding_Aling

>basically you're investing in a REIT Whoa, isn't there a huge caveat to this metaphor--it doesn't pay a dividend!

SimbaOnSteroids

That or something like O or VNQ or pick your REIT that has to take out loans to finance all expansion.

httmper

Appreciate the opinion, but not looking to have a bunch of individual stocks in portfolio, prefer to stick to funds. And some of the REIT fees are not out of line in my opinion.

Ehud_Muras

You can take the top 10 holdings of all the majority of Real Estate ETFs and just buy the stock. You'll save on the fees. Also look for non REIT companies who's basically operate like a REIT like McDonald's (MCD) and Blackstone (BX) Their dividends are considered qualified.