What Is a REIT?

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Currently there are about two trillion dollars worth of publicly traded REITs in the United States. About 40 different countries will allow the formation of a REIT that can be traded. Public REITs are traded on the stock exchanges and they are also bundled and contained in mutual funds so you can buy them that way as well.

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