REIT Investing For Beginners
Investing in Real Estate Investment Trusts sounds complicated and difficult, but it doesn’t need to be. REIT Stocks are no different than any other security, they trade up or down based on the performance of the assets owned by the company.
Therefore, the only way to approach any REIT is to look at the assets the firm owns. In particular, take a close look at where the assets are located and what type of assets they are. In this environment, a REIT that own nothing but office in Orange County, or strip malls in Stockton, California are unlikely to outperform the market. However, a REIT that owns bread and butter assets, such as elder care facilities in Miami, should be relatively well insulated from the market carnage. Do your homework and be careful, make sure the REIT you like passes the smell test.
