REIT (Real Estate Investment Trusts)

[Reyaj]

For the investors out there what are your thoughts on these? I know a few people that invest directly in real estate. While it makes money they say the maintenance can be a royal pain in the azz..

These funds seem like a no brainer in that you are simply investing in stock of Real Estate companies..

 

[EyeBRollin]

Owning real property is considerably more lucrative than REITs.

 

[jaygreenb]

For the investors out there what are your thoughts on these? I know a few people that invest directly in real estate. While it makes money they say the maintenance can be a royal pain in the azz..

These funds seem like a no brainer in that you are simply investing in stock of Real Estate companies..

You are not going to get the same rate of return and some of the tax benefits but is also going to take up a lot less of your time. This blog has a lot of great articles on different ways to own real estate and some of the trade offs. A good friend of mine owns/runs a commercial real estate fund that I have invested in for years, completely hands off which I like but miss out on some of the benefits.

https://www.whitecoatinvestor.com/

 

[RickTheToad]

For the investors out there what are your thoughts on these? I know a few people that invest directly in real estate. While it makes money they say the maintenance can be a royal pain in the azz..

These funds seem like a no brainer in that you are simply investing in stock of Real Estate companies..

VNO and O are solid companies. However, they are not without risk. I invest and manage my own multi-families as a side business from my normal job. I like to keep busy. Usually higher returns, however, more hands on work and headaches. One can hire a property manager, but all they do is make a phone call and tack 30% on to whatever the technician charges them. I've used a few in the past, all but one were pure garbage.

If you do not want to be a handyman, REITs can be a good option. Check with your investment advisor.

 

[Reyaj]

Owning real property is considerably more lucrative than REITs.

I just am not handy with fixing stuff when it breaks. I have a friend who rented out a two family house, he said it was a huge head ache.. he had a tenant frequently late on payments who had to take to court multiple times.. the place was damaged after he left also..

I like low maintenance...

You are not going to get the same rate of return and some of the tax benefits but is also going to take up a lot less of your time. This blog has a lot of great articles on different ways to own real estate and some of the trade offs. A good friend of mine owns/runs a commercial real estate fund that I have invested in for years, completely hands off which I like but miss out on some of the benefits.

https://www.whitecoatinvestor.com/

Is there a ticket for it I can purchase odd Robinhood?

VNO and O are solid companies. However, they are not without risk. I invest and manage my own multi-families as a side business from my normal job. I like to keep busy. Usually higher returns, however, more hands on work and headaches. One can hire a property manager, but all they do is make a phone call and tack 30% on to whatever the technician charges them. I've used a few in the past, all but one were pure garbage.

If you do not want to be a handyman, REITs can be a good option. Check with your investment advisor.

Yeah definitely don't want to be a handy man.. you know any good tickers I can purchase?

 

[jaygreenb]

Is there a ticket for it I can purchase odd Robinhood?

No ticker, it is a private fund and you have to be an accredited investor. I am not well versed in RE and know/trust him. He has a niche he typically works within and has a process to maximize value.

 

[EyeBRollin]

I just am not handy with fixing stuff when it breaks. I have a friend who rented out a two family house, he said it was a huge head ache.. he had a tenant frequently late on payments who had to take to court multiple times.. the place was damaged after he left also..

I like low maintenance...

Low maintenance = low returns.

Get handy. Rent wisely. Owning real estate is significantly more lucrative for many reasons.

 

[RickTheToad]

I just am not handy with fixing stuff when it breaks. I have a friend who rented out a two family house, he said it was a huge head ache.. he had a tenant frequently late on payments who had to take to court multiple times.. the place was damaged after he left also..

I like low maintenance...



Is there a ticket for it I can purchase odd Robinhood?

Yeah definitely don't want to be a handy man.. you know any good tickers I can purchase?

It's important to learn how to vent a prospective tenant. Credit report, paystubs, etc. Once they miss a payment, you need to get on them and get into a payment arrangement or file for an eviction. Make sure the tenant has tenant insurance to cover any major damage. In Connecticut, we can hold a 2 month sec. deposit. Sh!tty tenant states, such as New York, you can only hold a month. Those funds help offset the turn-over on the unit.

For REITS, you really should check with an investment advisor. There are assoc. risks that need to addressed. It's not for the faint at heart.

 

[Fruitbat]

Are people going to do what they always do, move from what went up before to what’s going up now?

You have to reverse your thinking to make long term money.

Buy what’s cheap.

 

[member160292]

Are people going to do what they always do, move from what went up before to what’s going up now?

You have to reverse your thinking to make long term money.

Buy what’s cheap.

Might as well buy a lottery ticket.

I've actively traded /CL and /NQ and going against the market can screw you badly.

 

[zekko]

For the investors out there what are your thoughts on these? I know a few people that invest directly in real estate. While it makes money they say the maintenance can be a royal pain in the azz..

I have a REIT in my Roth IRA. Much like you, I'm not willing to do maintenance and I have even less patience for dealing with tenants, so I'm not interested in becoming a real life landlord. So I have the REIT as a way to diversify, as a way to include some real estate. The thing I like about it is that it pays dividends, so even if the stock is down you're getting something. As I understand it, when the managers collect the rent, a (small) portion goes to the stockholders.

I can't say it's made me a ton of money over the years, but it has made me some money. It's not a get rich quick type of scheme but it seems to be a solid investment. I got it years ago as a long term "buy it and forget it" type of thing. I've never regretted getting it.

 

[member160292]

I have a REIT in my Roth IRA. Much like you, I'm not willing to do maintenance and I have even less patience for dealing with tenants, so I'm not interested in becoming a real life landlord. So I have the REIT as a way to diversify, as a way to include some real estate. The thing I like about it is that it pays dividends, so even if the stock is down you're getting something. As I understand it, when the managers collect the rent, a (small) portion goes to the stockholders.

I can't say it's made me a ton of money over the years, but it has made me some money. It's not a get rich quick type of scheme but it seems to be a solid investment. I got it years ago as a long term "buy it and forget it" type of thing. I've never regretted getting it.

It's a solid index to park your money instead of in the bank.

 

[Fruitbat]

Might as well buy a lottery ticket.

I've actively traded /CL and /NQ and going against the market can screw you badly.

Active trading is closer to lottery tickets. Most if not all the evidence points to profitable active day trading being a unicorn.

Investing is a long game.

Im talking holding periods of years, not hours or days.

 

[member160292]

Active trading is closer to lottery tickets. Most if not all the evidence points to profitable active day trading being a unicorn.

Investing is a long game.

Im talking holding periods of years, not hours or days.

Too much uncertainty in the market to hold many equities long term. I'm dinkin and dunking to make some decent income with this volatility.

 

[Fruitbat]

Too much uncertainty in the market to hold many equities long term. I'm dinkin and dunking to make some decent income with this volatility.

Uncertainty is the precise reason to hold them.

You’re going to buy them once they start going up?

I think equities will trough next year one unemployment peaks, but nobody can call bottoms and tops .

Fill your boots I say. These are exactly the same companies people were buying at double the price in many instances a year ago.

Bear in mind I believe in the EMH, which means I don’t believe in charting as a long term tool to create alpha.

i was full fat oil, commodities and FTSE in 2020 and I’ve just started rotating into growth and tech. Contrast that to holding growth and tech in 2020 and buying value and resources today.

I’m working on at least a 5 year timeframe. If you want quicker returns, you may get lucky; you may not.

Averaged 11.8% over the last 10 years and that’s good enough for me. I am a professional though.

 

[member160292]

Uncertainty is the precise reason to hold them.

You’re going to buy them once they start going up?

I think equities will trough next year one unemployment peaks, but nobody can call bottoms and tops .

Fill your boots I say. These are exactly the same companies people were buying at double the price in many instances a year ago.

Bear in mind I believe in the EMH, which means I don’t believe in charting as a long term tool to create alpha.

i was full fat oil, commodities and FTSE in 2020 and I’ve just started rotating into growth and tech. Contrast that to holding growth and tech in 2020 and buying value and resources today.

I’m working on at least a 5 year timeframe. If you want quicker returns, you may get lucky; you may not.

Averaged 11.8% over the last 10 years and that’s good enough for me. I am a professional though.

Couldn't resist...

Going back, shares have been overvalued and even inflated over the past few years. P/E for growth and tech companies were extremely high, but it was the norm back then. We're seeing a correction, maybe with the aftermath of covid. Even with positive 10K's and outlook from companies, no one is buying.

I find it baffling with the chip shortage that $SOXX is down 38% YTD.

 

[Fruitbat]

Couldn't resist...

Going back, shares have been overvalued and even inflated over the past few years. P/E for growth and tech companies were extremely high, but it was the norm back then. We're seeing a correction, maybe with the aftermath of covid. Even with positive 10K's and outlook from companies, no one is buying.

I find it baffling with the chip shortage that $SOXX is down 38% YTD.

Which shares? It was a growth and tech bubble. Value plays weren’t necessarily overvalued, the FTSE is a value index, and the shiller PE of the 100 was very low compared to US tech.

low rates = long duration stocks. High rates= shorter duration.

Ive Always held allocations to commercial property and commodities. I much prefer bricks and mortar over REITs.

Would I hold equities now? You betcha.

Regardless of short term noise,nobody can time markets perfectly.

I agree tech was overvalued, hence I didn’t hold any 2019-2021z. I was full fat value.

 

[member160292]

I made most of my gains holding TQQQ 2019-2021

 

[Fruitbat]

I made most of my gains holding TQQQ 2019-2021

i made most of my gains holding barbells

 

[Reyaj]

It's important to learn how to vent a prospective tenant. Credit report, paystubs, etc. Once they miss a payment, you need to get on them and get into a payment arrangement or file for an eviction. Make sure the tenant has tenant insurance to cover any major damage. In Connecticut, we can hold a 2 month sec. deposit. Sh!tty tenant states, such as New York, you can only hold a month. Those funds help offset the turn-over on the unit.

For REITS, you really should check with an investment advisor. There are assoc. risks that need to addressed. It's not for the faint at heart.

Didn't know CT lets you get 2 months up front, you are right I've always heard only a month. I remember my friend kept having to bring him to court, and then he would pay and just keep delaying the process. He said it isn't easy to kick a tenant out so they know how to work the system.