Anyone investing in REIT?

[Maggot]

Real Estate Investment Trust.

It looks like a way to get a good return with low risk factor especially since managing rental property has become a pariah.

Ive read EQIX is a good one.

Opinions and actual knowledge appreciated.

 

[Nik H]

HAHAHAHAHAHAHAHAHAHAHAHA

 

[hlee]

Sounds like “investing in precious metals” that you don’t have physical control over…

 

[BullGear]

I've made a ton of money in my REITs. Reinvest your dividends. You will find most REITs will be investing in planned rental communities. Entire blocks of homes built to be rental properties for the owner of the community. I'd say that 80% of my investments are going into these types of communities.

I don't share any of my personal information, so I can't tell you which funds I have, but they do not include the one you mentioned.

 

[BullGear]

Sounds like “investing in precious metals” that you don’t have physical control over…

So I take it you don't invest in a 401k fund for your retirement? After all you don't have any control over those funds either.

 

[Nik H]

I've made a ton of money in my REITs. Reinvest your dividends. You will find most REITs will be investing in planned rental communities. Entire blocks of homes built to be rental properties for the owner of the community. I'd say that 80% of my investments are going into these types of communities.

I don't share any of my personal information, so I can't tell you which funds I have, but they do not include the one you mentioned.

Define a “ton” in terms of percentage per year.

I know a few individuals that have made a lot of money in REITs but they were all General Partners versus Limited Partners.

I have a feeling that you are discussing EFTs that focus on real estate versus traditional REITs which are not traded on the exchanges.

I invested in one REIT a long time ago that focused on low income housing construction and it generated 20% of your investment per year in the form of tax credits. Not tax deductions but dollar for dollar credits. If you actively owned real estate, you could deduct the credits from your tax liability. That was a great investment as I owned a bunch of rental properties at the time.

 

[BullGear]

Define a “ton” in terms of percentage per year.

I know a few individuals that have made a lot of money in REITs but they were all General Partners versus Limited Partners.

I have a feeling that you are discussing EFTs that focus on real estate versus traditional REITs which are not traded on the exchanges.

I invested in one REIT a long time ago that focused on low income housing construction and it generated 20% of your investment per year in the form of tax credits. Not tax deductions but dollar for dollar credits. If you actively owned real estate, you could deduct the credits from your tax liability. That was a great investment as I owned a bunch of rental properties at the time.

Last year I averaged 14.4%. No, I know what a REIT is and I assure you I invest in REITs.

 

[BullGear]

As luck would have it, I got a notification of a new investment.

BullGear — We’re pleased to announce the latest addition to your XXXXXX portfolio: single-family rental homes in Tucson, AZ. This investment fits into our broader strategy to invest in affordably-priced apartments across the Sunbelt — an asset class that has demonstrated stability through the pandemic while being positioned for outsized growth in the coming years.

 

[Nik H]

Last year I averaged 14.4%. No, I know what a REIT is and I assure you I invest in REITs.

Can’t complain about that return.

I am glad that they are working for you. I know a few that got burned in 2008 timeframe, especially with REITs that were focusing on the growth in CA. Even a couple that saw it coming couldn’t get out due to the liquidity issues with that REIT. Liquidity was always a problem for me. Don’t know if that has changed

 

[BullGear]

Can’t complain about that return.

I am glad that they are working for you. I know a few that got burned in 2008 timeframe, especially with REITs that were focusing on the growth in CA. Even a couple that saw it coming couldn’t get out due to the liquidity issues with that REIT. Liquidity was always a problem for me. Don’t know if that has changed

No, it can still be a problem. You have to petition for a withdrawal, it's up to them if they allow it. Usually they have a percentage that they allow to get out. If you're out of that time table, you can't get out at that time.

 

[Maggot]

No, it can still be a problem. You have to petition for a withdrawal, it's up to them if they allow it. Usually they have a percentage that they allow to get out. If you're out of that time table, you can't get out at that time.

Is that so in a publicly traded REIT? I thought those were just like stocks, you buy and sellat your discretion.

 

[Nik H]

Is that so in a publicly traded REIT? I thought those were just like stocks, you buy and sellat your discretion.

That’s a real estate EFT

 

[hlee]

So, you give them your money and then they tell you when you can have it back, if you can have it back? An investment you can't sell isn't an investment.

 

[BullGear]

If you know this going into the investment, it's not a surprise. In 4-5 years, I've gotten a 70% growth on my investment. This is a marathon, not a sprint type of an investment.

If this isn't for you don't do it.

 

[IkeEng]

REITs can be heavily leveraged. Mortgaged to the hilt in some cases. That's okay when interest rates are low and home or multi home prices are rising, but if\when that reverses the cost to carry can threaten their existence.

 

[Missalot]

There are many kinds of REITs specializing in almost all aspects of real estate: strip malls, professional offices, hospitals, skilled nursing facilities, data storage, cell towers, storage units, hotels, farmland, timberland, industrial space, government offices, billboards, and the list goes on and on. Many are traded on the major stock exchanges. To be a REIT, you have to pay out most of your income to your owners which creates some tax savings (as well as potential problems). They generally have favorable dividend yields making them attractive to retirees. Yes, the REIT market got slammed in the 2008 time frame as did a lot of industries, but if you hung on, most REITs soared to new highs. REITs aren't for everyone, but they do belong in most people's portfolios in my opinion. Most of my REITs have done very well, but I had some dogs too.

 

[IkeEng]

REITs in general are more highly leveraged, regardless of what type of property they are investing in. The leverage in needed, because as you said, they have to pay out most of their income to investors meaning they have to borrow funds to expand their property portfolio. The upfront cost of purchasing a strip mall, or a collection of self storage properties is high. It's the nature of the business model.

I'm not trying to discourage anyone from investing in REITs. I agree that having a few in your portfolio is a good idea. What I was trying to express in simple terms is that REITs carry an added risk factor during periods of rising interest rates and falling property values.

As for 2008. Any company that made it through the GFC eventually soared to new all time highs. For REITs it took 8 years.

 

[muzzleloader]

Only as a mutual fund that tracks the whole REIT market (Vanguard). 10% annualized over the last decade. Small slice of our overall, Getting rich slowly

 

[ZiaHunter]

I was in a senior management position for an industrial REIT for many years and knowing how most of them operate I would never invest in one.

 

[BullGear]

I was in a senior management position for an industrial REIT for many years and knowing how most of them operate I would never invest in one.

You wouldn't eat at your favorite restaurant if you worked there.

 

[rlsmith1]

Make sure it's public so you have liquidity and invest with sponsors who have a real track record through multiple business cycles. Keep an eye on fees. Up front, over term and disposition fees (if any).

Real estate is a good way to hedge inflation as long as you are in sectors that have shorter lease duration. Multifamily and self storage would be top of my list. Student housing and senior living have some unknowns that can be mitigated by investing with groups that have a great track record and lots of relevant experience.

Office, NNN, and medical office typically have leases that have fixed rental escalators. In these asset classes you are trading certainty of payments (tenant credit) for potential upside (fixed lease payments).

The item to look at for a public REIT is what their share redemption program is like. For example, they may have a share redemption program for up to 5% of outstanding shares per quarter (20% per year). Of course, this works well unless everyone wants out at the same time

 

[BullGear]

Another new investment along the same lines as most of them over the last 24 months. That's 2 new investments in the last 24 hours.

BullGear — We’re pleased to announce the latest addition to your XXXXX portfolio: a single-family rental home community in Myrtle Beach, SC, along the Atlantic coast. This investment fits into our broader strategy to invest in affordably-priced apartments across the Sunbelt — an asset class that has demonstrated stability through the pandemic while being positioned for outsized growth in the coming years.

 

[BullGear]

A retirement community is the latest for my REIT.

An update on your XXXXX portfolio: We’ve provided a loan for the acquisition of roughly 11 acres in the Bay Area, as the future site of a 376-unit rental community. While the borrower completes architectural designs and secures construction permits, we are entitled to earn an annualized return on our investment equal to 8.5%.

 

[BullGear]

We hit a home run with this one.

BullGear — In November 2016, we invested in the Enclave at Lake Ellenor, a 296-unit apartment community in Orlando, FL, as part of your XXXXX portfolio. Today, we’re pleased to report that the sponsor has successfully sold the property and paid back our investment, resulting in an annualized return of roughly 36.7%.

 

[BullGear]

I'm not advocating for any of these REITs, but it's an informative article about REITs.

These 3 REITs Won't Grow Your Money Overnight But Are No-Brainer Long-Term Buys | The Motley Fool

Buy and hold this diverse trio to actively enjoy passive income, and likely share growth, for years to come.

www.fool.com

 

[acudaowner]

powder , primers , bullets and brass . Nope no reit or bit coin in any of that .

 

[RUTGERS95]

reits routinely beat the mkts long-term

 

[BullGear]

Seems the threat of inflation isn't stopping them....

BullGear — We’re pleased to announce the latest addition to your XXXXX portfolio: a single-family rental home community in Jacksonville, FL. This investment fits into our broader strategy to invest in affordably-priced apartments across the Sunbelt — an asset class that has demonstrated stability through the pandemic while being positioned for outsized growth in the coming years.

 

[BullGear]

Invested in crypto already. nope

What does this have to do with REITs?

 

[BullGear]

Just a quick article from Cramer about the positions of certain REITs.

Jim Cramer's REIT Picks From Earlier This Year Reveal Alarming Truth

Jim Cramer is a lightning rod when it comes to scrutiny. On one hand, giving investing advice every day on air for years is naturally going to produce some losing picks. However, Cramer has become the focal point of a lot of targeted opposition. For instance, you can check out his ongoing...

www.yahoo.com

Take it for what it's worth.

 

[n2ishun]

Take it for what it's worth.

I wouldn't take it if you paid me to.
I'll assume you've never been to Tucson.
I can buy land at $1k per acre there, nothing down, owner carry.
Let me know how this is working out for you next year....hell, in 6 months.

 

[BikePilot]

A REIT is a particular tax structure. It can be used for numbers types and structures of real estate investment. The two most common for retail investors are internally managed public reits and externally managed private reits. The public ones, for example NYSE: AVB, tend to be very low leverage (less than 20% ltv and less than 6:1 debt to ebita). They tend to do only one product type. They tend to be very efficient ways of owning that product type with no external fees and low internal G&A load (under 30bps). Their stock is a public security and you can trade just like anything else. Most of it is owned by large institutional investors who hold for the long term.

The large private reits (bx's b-reit for example) tend to be highly levered (60% ltv or higher), and typically have high fees paid to the external manager of the REIT. The stock is privately traded with limited liquidity. Most is held by private retail investors who work with RIAs.

 

[SilentStalkr]

Real Estate Investment Trust.

It looks like a way to get a good return with low risk factor especially since managing rental property has become a pariah.

Ive read EQIX is a good one.

Opinions and actual knowledge appreciated.

Can’t complain about that return.

I am glad that they are working for you. I know a few that got burned in 2008 timeframe, especially with REITs that were focusing on the growth in CA. Even a couple that saw it coming couldn’t get out due to the liquidity issues with that REIT. Liquidity was always a problem for me. Don’t know if that has changed

Not all REITs are created equal.

 

[Nik H]

Not all REITs are created equal.

Liquidity is a gift....ignore at your own peril

 

[Maggot]

Not all REITs are created equal.

And from what I see most all of them are down considerably.

 

[SilentStalkr]

And from what I see most all of them are down considerably.

Not any I’m watching but that’s not surprising, pretty much everything is down right now. As mentioned many times now, hold, buy low, ride up, diversify. Nobody can time the market, well except for politicians lol.

 

[BullGear]

And from what I see most all of them are down considerably.

Not true, some are still above water. I have 1 that is a little bit more than 6% and another that is at about 4%. There are still some who are showing returns that were generated during the good time. I don't know what their most recent activity is doing. I will look much closer in about 6 months to a year from now. I'm going to ride any investment that's producing positive returns at this time.

The one thing that is interesting, both of my REITs are investing in RENTAL COMMUNITES. Whole communities are being built for the one and only purpose of individual homes for lease. I know of property owners who are being paid much more than 100% of the property's value. Even if just to build 4 homes on said property. These homes are being built for rental income.

I find this extremely interesting.

 

[Maggot]

Not true, some are still above water. I have 1 that is a little bit more than 6% and another that is at about 4%. There are still some who are showing returns that were generated during the good time. I don't know what their most recent activity is doing. I will look much closer in about 6 months to a year from now. I'm going to ride any investment that's producing positive returns at this time.

The one thing that is interesting, both of my REITs are investing in RENTAL COMMUNITES. Whole communities are being built for the one and only purpose of individual homes for lease. I know of property owners who are being paid much more than 100% of the property's value. Even if just to build 4 homes on said property. These homes are being built for rental income.

I find this extremely interesting.

That is interesting. Quarters for the serfs? Is that by Blackrock?

What I meant was that most are down (you said you had been getting +/- 14%). Many are in the negative.

 

[BullGear]

That is interesting. Quarters for the serfs? Is that by Blackrock?

What I meant was that most are down (you said you had been getting +/- 14%). Many are in the negative.

I believe the reason is that more than 90% of their investments are in Rental Communities. I mean we are talking well over 90k houses built in communities for the express reason that they believe housing sales will not be affordable for the majority of society in the future. Scary!

 

[Maggot]

I believe the reason is that more than 90% of their investments are in Rental Communities. I mean we are talking well over 90k houses built in communities for the express reason that they believe housing sales will not be affordable for the majority of society in the future. Scary!

"You will own nothing and like it".

And even if you dont like it, you'll have no choice, because we own the means of production. Where have I heard that before?

 

[pineoak]

Not against REITs, Cramer is a crackpot.

Ignore anything he says.

 

[BullGear]

Those REITs speak for themselves. Their sucess and failures are there to see. I wouldn't trust him for much of anything he says either.

 

[Maggot]

Those REITs speak for themselves. Their sucess and failures are there to see. I wouldn't trust him for much of anything he says either.

He's a showman, little more.

 

[BullGear]

He's a showman, little more.

I personally don't like his on the air persona. But I don't have a liking to the show off type personalities, especially when it come the profession types.

 

[Maggot]

I personally don't like his on the air persona. But I don't have a liking to the show off type personalities, especially when it come the profession types.

Ive only watched him once for a short while and what I saw was 'Huckster.'

 

[BullGear]

Ive only watched him once for a short while and what I saw was 'Huckster.'

That's a good description.

 

[BullGear]

Got an interesting notification from my broker for one of my REITs.

BullGear — We’re pleased to announce the latest addition to your Xxxxxxx portfolio: an approximately 302 acre property in Myrtle Beach, SC as the future site of a new community of 251 single-family rental homes.

This investment follows a Fixed Income real estate strategy, with an innovative structure: We’ve engaged a home builder to develop the land into finished lots. The builder will then have the rights to purchase the lots from us at a set price. In exchange for those rights, they have agreed to pay us a fixed monthly rate, similar to an interest payment.

 

[RUTGERS95]

Got an interesting notification from my broker for one of my REITs.

BullGear — We’re pleased to announce the latest addition to your Xxxxxxx portfolio: an approximately 302 acre property in Myrtle Beach, SC as the future site of a new community of 251 single-family rental homes.

This investment follows a Fixed Income real estate strategy, with an innovative structure: We’ve engaged a home builder to develop the land into finished lots. The builder will then have the rights to purchase the lots from us at a set price. In exchange for those rights, they have agreed to pay us a fixed monthly rate, similar to an interest payment.

pm me details please