Wednesday, July 20, 2011

Type of Investments: 3 - REITs

REITs, Real estate investment trusts, act in many ways as a standard company however the few key differences can be important...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

REITs can bring in stability to a portfolio as far as income. The leases that are signed can last several years or 10+. These leases will spell out how much is owed and if the rate adjusts during the leases life. Unless a tenant walks out on a REIT, the REIT will have a known quantity on its income.

Most REITs will specialize in one sector. A retirement community REIT will have the vast majority of its real estate in buildings to cater to the needs of the elderly with perhaps some overlap in assisted leaving or medical office buildings. The main theme here would be health care.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial advisor, accountant, or tax advisor. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

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