Public REITs are traded on the stock markets. They're usually fairly liquid. In private REITs, you are going to be dealing with some kind of manager or promoter. And so it can be a useful source of income for somebody who is drawing down their portfolio. But just be aware that investing in a private REIT is a different kettle of fish from the public REITs.
In this episode, which is Part One of Two, we begin our analysis of REITS as an investment using David Stein's 10 Questions to Master Investing, which are:
1. What is it?
2. Is it an investment, a speculation, or a gamble?
3. What is the upside?
4. What is the downside?
5. Who is on the other side of the trade?
6. What is the investment vehicle?
7. What does it take to be successful?
8. Who is getting a cut?
9. How does it impact your portfolio?
10. Should you invest?
We cover the first five questions in this episode.
Helpful links:
Investopedia Article on REITs: https://www.investopedia.com/terms/r/reit.asp
Directory of REITs by sector: https://www.reit.com/investing/reit-directory?title=nly&field_rtc_listing_status_tid_selective[]=524&field_address_country_selective[]=US&sort_by=title
The Section 199A Tax Benefits of REITs: https://www.kitces.com/blog/reit-real-estate-investments-section-199a-qbi-deduction/#:~:text=Because%20under%20IRC%20Section%20199A,Qualified%20Business%20Income%20or%20QBI)
Correlation Matrix of Most of the REITs and funds mentioned: https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=VTI%2C+VNQ%2C+VNQI%2C+REET%2C+BXP%2C+PLD%2C+O%2C+SPG%2C+AVB%2C+WY%2C+VTR%2C+WELL%2C+PSA%2C+AMT%2C+CCI%2C+DLR%2C+WPC%2C+VNO%2C+LAMR%2C+GLPI%2C+LAND%2C+IRM&timePeriod=2&tradingDays=60&months=36
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