Commercial REITs - Posted by David Matthew

Posted by Cindy on February 14, 2007 at 17:45:08:

Has anyone had any experience with Landwin REITs?

Commercial REITs - Posted by David Matthew

Posted by David Matthew on November 19, 2006 at 02:32:24:

Hello names David, I’m 21 and just starting to get my feet wet in real estate investing. My question is about commercial REITs. I was recently given the opportunity to participate in a new public REIT offerd by Landwin INC. My question is this: What am I to expect from my investment? I was told that owning part in a REIT is like having ownership of the properties but with the long term triple net leases there is nothing to worry about. I’m only 21 and a future in real estate investing is the career path I’m pursuing. Any info on the pros amd cons of investing in a commercial REIT will help alot. Thanks.

Fund of Funds - Posted by brandoncbsre

Posted by brandoncbsre on November 25, 2006 at 05:55:35:

If you are going to invest in REIT’s buy a Fund of Funds type investment. Example is TrowePrice Real Estate Fund (TRREX) This has been returning 30+% last couple of years and is diversified within the real estate sector. I have $40k invested in it and it gained over 5% this week.

Re: Commercial REITs - Posted by ray@lcorn

Posted by ray@lcorn on November 20, 2006 at 20:34:25:

David,

REITs are decidely NOT like direct ownership of properties. They are securities, i.e. stocks, and should be analyzed as such as to management, business model and pricing.

You get dividends from net cash flow after operational expenses.There are no tax benefits, no leverage, and any appreciation comes from the share price, which in theory is linked to the value of the real estate, but depends solely on the competence of management to execute the business plan.

ray

Re: Commercial REITs - Posted by Doug O.

Posted by Doug O. on November 20, 2006 at 11:19:02:

David, a REIT, like any other investment, is not guaranteed to make money. You should perform your due diligence and research the director of the REIT to determine his/her experience in the real estate business. I’ve seen numerous REITs that were poorly managed lose money over time. You should also find out where the focus of the particular REIT will be (ie, multi-family residential, office space, commercial/retail, etc) and how that relates to the experience of the management team.
The good thing about a REIT is that a well managed one should provide steady dividend cash flow, with some appreciation.

Re: Commercial REITs - Posted by john

Posted by john on December 07, 2006 at 16:35:32:

In addition to publicy traded reits. You should look into privatley traded reits. You can earn around 7% rate of return and have a nice potential profit if the company ever decideds to go public. The private reits are also less volatile then the public reits.