are REIT mutual funds a good idea?

Question

any insight on the average return from an REIT and how it will help me?

Trevor Ewen · Answer

@Jerome Leigh Goddard Jr.

I own several REIT ETFs. I think they are a smart part of a diverse portfolio, and definitely give you some exposure to real estate in completely different classes from you specialty.

I wrote a member blog post on the topic here. My recommendation: REITs are really a nice piece of diversity to add to an institutional (stock & bond) portfolio. If you plan to be in land-lording and own physical assets, they are not a true substitute.

My wife and I have assigned percentages of our capital that can be allocated to either real estate or stocks / bonds. The REITs factor entirely into the stocks / bonds side. Feel free to shoot me a message if you have more questions on the specifics.

Christos Anastasopoulos · Answer

That would depend on your goals. Typically REIT(s) offerings are considered long term investments(3-7 year terms). They are vehicles for consistent monthly income or growth if you are using a self directed IRA. Non-Listed REIT(s) are not as liquid however, the right fund can offer more stability cause they do not have any direct correlation with the s&p etc.. and can offer anywhere from a 4%-8% annualized return paid out in monthly dividends. Hope this helps.

Disclosure: These are my personal opinions and are not meant to offer any financial advise.

Steve Vaughan · Answer

A pretty low yield ceiling with no say in how it's managed or what is purchased.  I'll stick with direct RE investments I can control @Jerome Leigh Goddard Jr.!

are REIT mutual funds a good idea?

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