All Forum Posts by: Kevin Powell

Is this going to be a duplex/triplex/quadplex? I don't believe you can use first time homebuyer programs for strictly investment property if you don't live there, unless this is some kind of state-specific program with which I'm unfamiliar. 

@Kevin Powell

NO on REIT. Find a successful investor and ask to be a capital partner.

I'm not sure if you're still looking for any new answers but it's perfectly okay to do both. In fact, it's a great way to start getting in the habit of reading financials. This is important if down the line you're looking to diversify and want to invest in other options outside of REITs. REITs are great because they're low cost, some actually offer a monthly return and one of the biggest advantages, is you can pull out in a day if you need the money or something happens. You obviously can't do that with a home/apt. Some other disadvantages off the top of my head are, you are taxed pretty heavily during the sale within the first year as well as any dividend not coming into your Roth ira. You are also not able to tap into the equity in the way that you would with a home, so expanding will prove to be more difficult. Few other issues are lower returns, lack of write-offs and your portfolio value is dependant on not just the RE market, but the fluctuations of the stock market as well. Scared investors pulling their money out for whatever reason, driving your price per share down. I personally do both and don't see an issue with both. I would caution to just only invest, what you're willing to lose going the REIT route. Some of my personal favorite tickers are "O" "TWO" "NRZ" and "IIPR".

@Tyler Barker I would say a good filter is look at The REIT's that have increased their dividend payments for the last 25 years. That would give you a list of good REIT's that have been around for a while.

Hello Kevin. Just like any other investment, understand the risk and never invest more than you are willing to lose. They are relatively new but I imagine these guys are making money hand over fist using your money and doubt they would stop doing that anytime soon. But they have never had to survive a recession so only time will tell. Good luck!