For the last three months I watched atrocious breadth in the REIT sector. They were completely abandoned as if real estate was dead and interest rates were on the rise. The more I watched it, I was like, “Dude, I need some REIT action.”
I already own a house, and after yesterday’s good news I plan to pull all the equity out and go buy another house to lever up on physical housing. Make no mistake, we are entering the roaring 20’s and intend to be a rich man. Anyhow, I didn’t really see the need to add residential REIT exposure. Therefore, and with the help of Exodus, I chose DOC. This REIT owns stupid medical office space. These are ugly buildings where one sits for hours despite being “on-time” for their appointment. Doctors invest in this REIT because they’re weird and run in small circles and smell like antiseptic.
I’m not saying buy DOC. Go forth and cast your net into the REIT space on your own. We have 7 different REIT industries inside Exodus. Get in there, parse out the shit with the screener, and find the ones offering sick dividends with promising growth.
With ZIRP fastened in place by The Fed, demand for dividend stocks will increase. With interest rates held down real estate will continue to flourish, all kinds. With REITS left for dead, there are deals out there. These are ideal conditions for REIT exposure, IMO.
Note: I used as many acronyms as possible in this post, FTW
If you enjoy the content at iBankCoin, please follow us on Twitter
Just a house? Why not a whole.county in the D.?
Agree with the reits thesis, imo would focus attention on the healthcare reits, cause healthcare costs are out of fucking control! Lets profit.
Oh yeah $twtr is a pig
Good advice
Quick anecdote: a friend, older guy, is a dividend investor. Does not seem to grasp that dividends depend on profits. ZIRP sure looks good for dividends…in theory. But if profits vanish, these guys are going to get the double guillotine of no income and the equity price readjustment that comes with dividend elimination.
The only way to “safely” hold millions in cash is via treasuries. The govt bond bull ain’t over yet.