Real estate packs a powerful punch for your portfolio.  By purchasing shares of a real estate investment trust (REIT), any investor can easily gain access to this vast and powerful asset class.  REITs are especially good for younger people or renters who lack any exposure to real estate.  In this episode I’ll teach you the basics of investing in REITs, what to watch out for, and how to get started.  I also go through a list of my favorite choices to help you find some that may be right for you.

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North Bay Village

(CC image by Ines Hegedus-Garcia on Flickr)

Section 1: Background & Basics

  • What is a REIT?  How is a REIT different from a stock?
  • Listing types
  • Types of investments held within REITs

Section 2: What Determines the Price?

  • Fundamentals
  • Other financial conditions
  • Societal trends & demographics
  • How to pick a good time to add to, or to reduce, your REIT holdings

Section 3: Why You Should Own REITs

  • Exposure to hard assets that produce good cash flows
  • Income
  • Diversification

Section 4: Areas to Examine When Selecting a REIT

  • Equity REITs vs. Mortgage REITs: Very different!
  • Debt: levels & maturities
  • Exposure to troubled entities
  • Concentrated portfolios
  • Geography
  • Management
  • Tax treatment (United States)

Section 5: How to Begin Today

Resources

Background on REITs

REIT industry financial snapshot

Jeffrey Gundlach betting big on mortgages

 

Intro music by audionautix.com

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