Housing crisis, health crisis, cost of living crisis, debt crisis, inflation crisis, middle East crisis. How many crises can a koala bear? I'm approaching retirement with comfortable millions, yet scared of a market crisis and how to benefit from a possible correction. Where do I best grow my money?
I would advise the counsel of a seasoned financial pro. It may be expensive, but as the old saying goes "You get what you pay for." "Expert solutions require Expert providers" - my mantra
Truth is, investing with the help of a financial advisor set me up for life, retired as a millionaire at 55. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually. But if it wasn't for 2020 covid lockdown, I wouldn't have supplemented my income with stocks and alternative investments.
bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now... mind if I look up the professional guiding you please?
Melissa Elise Robinson is the licensed advisor I use. Just google the name and you’d find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, But so glad I did.
Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well.
NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
It's time to make high value games! Discounted dividend stocks. Ever grateful to my CFP "Catherine Morrison Evan’’ I now have a six-figure REIT portfolio, which includes, but is not limited to; AMT, SPG & PSA.... I now have 606 shares of AMT which pays dividends of $3800 per year.
Thanks for this tip. Her website popped up on the first page immediately I searched her, I read through her resume and it seems pretty tight. So, I dropped a message & hopefully she replies soon.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
The most important risk is management. Make sure to only invest in REITs that have good management teams. Many suffer significant conflicts of interest, especially in Canada. Stay away from REITs that are externally managed, unless they have very high insider ownership. That on its own should help you avoid many losers. I will soon cover some of the REITs to avoid on my channel. Thanks for the great video!
It is easy to understand the value of reits because the property is regularly independently valued. You can buy reits when the share price is below the Net Tangible Asset value and sell when it is above the NTA. There is also a lot of security that comes from the long leases. And it is a great way to hedge against inflation, and now we are seeing a lot of money printing.
Yes, plus you get paid the distribution while you wait for the NTA to recover to its fair value which it usually does at some point in the cycle. Personally I own some REITS and try to reinvest the distributions in the REIT also so that value of the holding compounds even in the absence of any capital appreciation in the share price.
I was literally about to comment, "Does a TFSA protect you from being taxed on REIT dividends/distributions" until 2:38 played lol. To anyone reading and haven't gotten to this part yet, yes the TFSA will protect you from being taxed on REIT dividends aka distributions.
I'm based in the UK, investing in stocks and REITs, UK-based and US-based & some shares. My US-based stockbroker allows me to invest internationally. Thanks for sharing this info!
@@ryanwickham1707 my portfolio has seen a significant increase over the years investing in the market, my stockbroker Jeff Dakin whose in charge of growing my portfolio has always ensured there are numerous opportunities to diversify my Investments.
@@markcyrus7898 I have always wanted to own some stocks which would serve as a means of passive income, would be glad if I can be in contact with your broker.
I have several RIETs in my portfolio and I have generally done well with them. But I have also taken my largest loss on any investment when one of the RIETs dropped 75% over the last year. I'm holding on to it for the time being since I think it's over sold. But I know I will never be whole on this investment.
I invested around 5% of my saving in vanguand reits ETF (VRE) and I didn't knew much about reits. Thank you for the information! You have a new subscriber! What do you think about bitcoin? Would you allow a part of your portfolio to bitcoin?
We're keeping our eye on this too... dividends on REITs were always taxed at higher rates (as ordinary income), but that was fine b/c they maintained higher distributions. Now that dividends are being slashed, the calculus is looking a little different 🤔
About 80 percent of my networth is in stocks with the rest being in bonds and the value of my house. I plan on retiring young and selling my home to travel the world rather than renting it out. Don't want to deal with the hassle of renting. At the same time I do want to have some ownership of real estate in the US and REITS fit exactly what I'm looking for. So most of the return I get from selling my home will go towards REITS.
4:28 while REITs are required to distribute as dividends 90% of their net income,it means, or at least in our country Phils., the year-end income or the URE, which excludes allocations for payables. This allows a REIT to acquire (in most instances from its sponsor), real properties that cost more than its 10% net income since payments can be done in yearly ammortizations, which are excluded from its net income as payables.
You can buy REITS during economic downturns to maximise $ per share. Because reits have very stable values you can clearly pick up a bargain! Be greedy when others are fearful.
Investments suck, cause I'm so addicted to them! I'm curious to check out your other videos. EDIT: Just finished the video, thanks for the info! I've got some REIT investments already, but I must admit this was really helpful.
I just turned 19 and I'm looking into investing into REITs along with other invesments (ROTH IRA, stocks, forex, etc.) and this video was extremely helpful. Thanks for posting! I'd love to hear any advice anyone could provide
I wouldn't call it share dilution if they are raising money to buy more property because the additional shares is offset by the additional value from the property purchased.
If I get a Target-Date-Fund Roth IRA will I be able to throw REIT stocks in there on Top of the plan or do i have to switch my TDF plan to an index IRA?
Thanks! And for me, I would probably invest in a single company like I do with bank stocks rather than an ETF to possibly see more capital appreciation! :)
I've been so surprised how the high dividend funds have been doing. VNQ, SPYD...I thought the high yielding stocks and funds would be doing well but I guess not since they're mostly energy, financials and real estate.
Right? Totally opposite to my thoughts going into the next recession. Thought the most overvalued tech companies would take a beating. Guess it all comes down to strongest balance sheets and "at-home" functionality of these companies.
I guess I am missing a key point. Everything I have read about passive income says to invest in REITS as a possible income source. They also say to put REITS into a retirement account or risk losing gains to taxes. How does that help me pay my monthly bills?
Nice video very well spoken, I own atleast a half dozen REITS and live off the dividends I get about 5500 a month after taxes which is a pretty good income I could not get on regular stocks I did not buy them for share value just for the dividends, one of them had lowered the dividend during covid { others did too } when the share price dropped by almost 2/3 rds fortunatley I bought most of my shares in the low point and they are now up by 90% but the dividend has not returned to the pre-covid level even with the share price approaching pre-covid they did raise the perferred back up but common only went up by 3 cents this video seems to offer very possible reasons for it thanks for the insight I have been debating dumping them due to the high share price it would take me a long time to make that kind of money from the dividend alone.
thats my plan too to live off the dividends, by the way, when markets crash will you just add to your REIT position, just buy more? lower the stock price the higher the yield gets.
Do you know if REIT'S are taxed differently if owned in an IRA or 401K account in the US? I would assume since its taxed deferred, you just pay the tax for the withdrawal .
I own REITs in my Roth IRA and nearly everything else in regular accounts. Valid points about payouts. I don't own REIT ETFs though, All individual REITs. Investing in the right REITs makes sure the shares don't get unjustifiably diluted. Issuing equity for projects with a good cap rate and scheduled rent increases will result in great growth all around. If equity is instead used for projects with flat returns over time then it can be very harmful to shareholders.
Such great insights, share buy backs are nearly essential. Right now I like PFE, FMC and CPT. I'm a new RUclipsr and if anyone in the comments needs solid stock analysis, I can help. Thank you in advance!
Totally different securities however their prices are correlated because REITs are viewed as bond alternatives. E.g. They'll both drop in value if interest rates go up
They like to keep the stock value fixed by dilution. I setup dividend reinvestment. It creates a compounding effect, which is powerful. You then look at total equity you hold, not their stock value.
When i invest with reits im not hoping for grwoth. I just enjoy free passive inc. for growth i go with tech stocks. I sometimes swing trade with reits cause i know they go up and down ! Easy money !
Pokiblue Yes. Only thing to watch out with REITs is that they can be get hugely over leveraged and (as the COVID crash showed) can dramatically lose value if there’s instability, even when property values haven’t budged. They’re actually sneaky because they can look very stable for long periods then suddenly tank. Now isn’t a bad time to buy in though, as they’ve been mostly corrected.
@@deraktdar i swing trade some reits looking at the RSi making some good 100$ swing. But yea as the REITs go down i use the dividends to lower down my average cost ! I have 1 swing trade account and 1 account that i never touch except increasing my positions. Im extremely patient and look for those opportunity when it drops, i try to detect a patern and secure a 75% chance swing trade.
Very well done video. The three concerns for REITs are things I've noticed many new investors (or even some who have invested for years) are unaware of. The issues with taxation and dilution will impact overall returns, and depending on our tax situation, we certainly need to be aware and planning accordingly.
Hi, Fantastic content! I have created a new REIT portfolio on M1 and I have 11 holdings in it. One of the holdings is VNQ and was wondering if it makes sense to have VNQ with my other REIT stocks.
@@GrimTTL Hello, I'm in Canada, but this article explains my initial comment. Correlation between real estate and stock market is around 0.2 to 0.4, which is relatively low. Reason is they can be affected by the same variables, but not at the same time. awealthofcommonsense.com/2018/09/is-real-estate-a-non-correlated-asset-class/ I don't know about Australian real estate, but anyway a diversified REIT will do the trick.
Hi, I am a Canadian citizen but not a Canadian resident for tax purposes. (not US resident either). Would you recommend I invest in REIT stocks and/or REIT ETFs? Or would you suggest a different route? - Thank you
REITs are wonderful when your networth and income are still pretty low. Because tax isn't much of an issue there. But once your income is high, stocks could be better for legally reducing taxes.
What if continue to invest those distributions back into buying more shared? How much that'll increase the total amount? Please share numbers if possible, thank you. Amazing video.
I've been studying and looking hard into EPR especially at it's current price. This is a long term game. Everybody wants quick money (which is nice) but at the same time, preparing for the future is a must. With reinvesting your returns and steadily adding more shares you could easily be bringing in 1k/month or more potentially within 10-15 years if you're wise with your money. That does seem like a long time when you say think of it, but for younger people (20-30y.o.) then it will be just in time.
EVO Brand, why did you choose EPR over O or WY? EPR seems vulnerable to pandemics which might be good times for buying into the company. O and WY seem to be pandemic proof, especially since people have to continue paying their rent regardless and what better way to social distance than in a forest.
One other thing which may not apply to many of us but I think would be good to know. The REITs I have, provide almost no credit [income] when trying to place a covered call option with them. With regular stock, I have been able to generate good income with covered calls especially when times were tough with that stock.
Found your channel, I am looking at investing into REITS because I heard it's a great way to avoid certain taxes. Thanks for creating this video and also love the 4 hour workweek book int he ack ;) just earned my sub and like!
Yea, something we're keeping our eye on... seems like key part of the value prop for REITs was their high distributions, which allowed you to justify the higher tax rate (being non-qualified dividends). Now that dividends are being slashed, net returns aren't looking so hot either 🤨
I invested 10% of my portfolio on REITs for some passive income. Those investments are currently dragging my portfolio a little down because of the pandemic causing both the share value to drop along with the distribution to be reduced. I still like them for a little extra income without having to sell any of my other investments. I am not generating as much as before but I do not plan on selling them and taking a loss. I knew the risks before I invested and I am sticking to my plan.
Since you can't day trade with your TFSA, I'm a bit confused about how these investments are to be made. I just made a TFSA account recently and am running it through a Robo-advisor (on Wealthsimple's platform). Sorry, I'm really new to all this stuff.
Great UK REIT that is still at a lower share price is Custodian Reit (CREI). The have quite a handful of retail holdings but their mostly really solid companies that will bounce back once Corona passes, the rest is split across industrial, small office spaces and warehousing.
Question: what if I’m considering starting an LLC and buying REITs and investing in dividend-paying company stocks? Would that reduce taxes and/or mitigate any of these risks? Great video! 👍
Solid work here - I have been considering but do not own any REITs in my portfolio. Largely because of the capital appreciation issue. You've got a new Sub!
Not easy anymore, 8% yes. Most stock screeners will find over 10%, but unknown very small companies. Even the mReits are paying that high. Unless you have found some jewels
Investing in REITs in my tax advantaged accounts. Kind of scary these days. Might look into retirement communities, I don’t think the virus will do what people are thinking it will in those communities. Might look into the Royal Bank of Canada. Thanks!
And you're down? I would hold for the dividend and hope that the capital gains come back over the years! That's all you can do really... unless you feel confident it will come back, then average down
Most REITs raise funds by having Dividend Reinvestment Plans. So on the point of share dilution he isn't entirely correct. Any listed company will have share dilution by issuing new stock, not just REITs.
@@NickPeitsch ... I got RioCan and Allied (2 grand). But I didn't know anything about Reits until I saw your (Very Informative) video. A concerning factor is Amazon which may affect malls, and a recessionary environment may hurt office rentals. Maybe I should have dumped the money into TD bank stocks instead. Love your videos!
Peter Hsu that is a concern, but it’s similar to Tesla taking over the oil and gas industry - a long ways away! You should be fine with RioCan since they’re one of the biggest in Canada. And thank you!!
For as long as I can remember I’ve never settled with random brokerages I invest more effectively with the help of my fund manager Ronald B. Furey. Profits have been consistent and with his skills I don’t bother with the complexities of the market, I just invest and take profits
@@Axelk8 No he doesn’t, he provides an investment management service where he trades on my behalf among other investors among his clientele list using his superior expertise. I take the extra effort to monitor the trades and learn a few professional tactics, normally I just provide substantial capital and stand by for withdrawals. This way it creates room for a more efficient and profitable trading process
@@GarmanH Sounds interesting but how do you handle the risk of him failing to deliver or simply stealing from you? please forgive the awkward questioning
I've been watching quite a few videos on this and I still don't understand how REIT companies profit from this when they have to pay out 90% (in some cases 100%) of their earnings in distributions/dividends. I'd like to understand. Thanks
@@sixpackbodybuilding So the portions of their assets/business portfolio that is not related to REITs is tax exempt? and/or the 10% from profits they retain is also tax exempt? If so that makes sense on how they benefit from REITs
REITs make up a huge chunk of my portfolio that pays out over 10% yearly..but I will use the dividend to buy aristocrats... I just wanted to yeild load so I have cash on hand in case I need it.
Yes just like the signal service at Traders Forte designed for beginners. Even though geared towards medium to high end net individuals and organisations, i still found it the most rewarding of all my assets, all others put together
Finally a comment with brain, experience beats hard work, I aim to invest in both stocks and real estate and I've set aside $450K to put towards stocks and make enough to invest in real estate after a year, any advise for me?
@@edensisters9453 Well considering you are new to investing, I highly suggest you get in touch with a coach or mentor to guide you on the best possible steps to take, that’s the most ideal way to jump into the market in these uncertain times.
@Human Made can’t disclose too much , but yea I’ve been using a coach since October 2020, growing my portfolio from $175k to $600k approx. It is pretty straightforward, not as complicated as it used to be.
@@jobidding6895 That’s impressive! How could someone go about getting investment guidance from a coach like that. Would you mind sharing your coach's Info?
Do you own any REITs in your portfolio? Let me know!
Is O stock a REIT? If so, then I own that one haha
I own EPR , SPG
3500 macerich stocks
Yeah it's a great one!
@@NickPeitsch cool!
Housing crisis, health crisis, cost of living crisis, debt crisis, inflation crisis, middle East crisis. How many crises can a koala bear? I'm approaching retirement with comfortable millions, yet scared of a market crisis and how to benefit from a possible correction. Where do I best grow my money?
Diversify… T bills, CDs, Gold, dividend stocks, Municipal bonds, Bitcoin, Real estate, etc assets speak when cash has no value
I would advise the counsel of a seasoned financial pro. It may be expensive, but as the old saying goes "You get what you pay for." "Expert solutions require Expert providers" - my mantra
Truth is, investing with the help of a financial advisor set me up for life, retired as a millionaire at 55. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually. But if it wasn't for 2020 covid lockdown, I wouldn't have supplemented my income with stocks and alternative investments.
bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now... mind if I look up the professional guiding you please?
Melissa Elise Robinson is the licensed advisor I use. Just google the name and you’d find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, But so glad I did.
Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well.
NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
It's time to make high value games! Discounted dividend stocks. Ever grateful to my CFP "Catherine Morrison Evan’’ I now have a six-figure REIT portfolio, which includes, but is not limited to; AMT, SPG & PSA.... I now have 606 shares of AMT which pays dividends of $3800 per year.
I want to play the long term game with well diversified fund. Please how can i reach this CFP of yours?
Most likely, you can run a google search on her name and find her basic information online; you are welcome to do further study.
Thanks for this tip. Her website popped up on the first page immediately I searched her, I read through her resume and it seems pretty tight. So, I dropped a message & hopefully she replies soon.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@GeorgestraitStriat Oh please I’d love that. Thanks!.
@@Donnafrank-k6e Clementina Abate Russo is her name.
Lookup with her name on the webpage.
The most important risk is management. Make sure to only invest in REITs that have good management teams. Many suffer significant conflicts of interest, especially in Canada. Stay away from REITs that are externally managed, unless they have very high insider ownership. That on its own should help you avoid many losers. I will soon cover some of the REITs to avoid on my channel. Thanks for the great video!
I own a reit with a historic 13% ea in a non taxable account, ecah dividends is reinvested in the reit. Great investment.
Awesome!!
what ticker?
What’s the REIT called?
It is easy to understand the value of reits because the property is regularly independently valued. You can buy reits when the share price is below the Net Tangible Asset value and sell when it is above the NTA. There is also a lot of security that comes from the long leases. And it is a great way to hedge against inflation, and now we are seeing a lot of money printing.
Yes, plus you get paid the distribution while you wait for the NTA to recover to its fair value which it usually does at some point in the cycle. Personally I own some REITS and try to reinvest the distributions in the REIT also so that value of the holding compounds even in the absence of any capital appreciation in the share price.
I was literally about to comment, "Does a TFSA protect you from being taxed on REIT dividends/distributions" until 2:38 played lol.
To anyone reading and haven't gotten to this part yet, yes the TFSA will protect you from being taxed on REIT dividends aka distributions.
I'm based in the UK, investing in stocks and REITs, UK-based and US-based & some shares. My US-based stockbroker allows me to invest internationally. Thanks for sharing this info!
Always great to invest in internationally, how passive has this been for you investing from the UK.
Thinking of an investment that can make good passive income, dividend and REITs ain't a bad idea.
@@ryanwickham1707 my portfolio has seen a significant increase over the years investing in the market, my stockbroker Jeff Dakin whose in charge of growing my portfolio has always ensured there are numerous opportunities to diversify my Investments.
@@niyashaasad369 true.
@@markcyrus7898 I have always wanted to own some stocks which would serve as a means of passive income, would be glad if I can be in contact with your broker.
Very important point about the distributions. That's exactly why I only own REITs in a tax-advantaged account
You're doing it right, Pierce!
Pierce Jordan - Personal Finance what you mean by tax advantage account ? You mean HSA or IRA ?
Quick Silver yes!
Pierce Jordan - Personal Finance thank you sir
I’m totally new to this. But what happens if you don’t own a reit in a tax advantages account? Can I transfer them to a tax advantages account?
I have several RIETs in my portfolio and I have generally done well with them. But I have also taken my largest loss on any investment when one of the RIETs dropped 75% over the last year. I'm holding on to it for the time being since I think it's over sold. But I know I will never be whole on this investment.
I invested around 5% of my saving in vanguand reits ETF (VRE) and I didn't knew much about reits. Thank you for the information! You have a new subscriber! What do you think about bitcoin? Would you allow a part of your portfolio to bitcoin?
I would have bought bitcoin but I wouldnt buy bitcoin 🤡
Thank you for the information. Nice delivery. You have a beautiful smile. I don't have REITs, but I'm thinking about it.
Very informative video. First channel I have subscribed to on RUclips.
Most REITs are at all time lows right now, so I bought a lot of them recently.
Sumit Basnet nice thanks!!
Great video, people always get blinded by the benefits of an investment ignoring the drawbacks. Thank you for informing us of these.
*I own a good amount of REITs. Some lowered their dividends.*
Passive Income Tom nice Tom 👍 great passive income vehicles!
Yea they have been cutting in half like crazy right now
We're keeping our eye on this too... dividends on REITs were always taxed at higher rates (as ordinary income), but that was fine b/c they maintained higher distributions. Now that dividends are being slashed, the calculus is looking a little different 🤔
Remote Ventures hopefully some are stable!
So true but it is a long game Passive Income Tom
Hey Nick do you agree this is the perfect time to buy into REITs everything seems at its lowest to me
About 80 percent of my networth is in stocks with the rest being in bonds and the value of my house. I plan on retiring young and selling my home to travel the world rather than renting it out. Don't want to deal with the hassle of renting. At the same time I do want to have some ownership of real estate in the US and REITS fit exactly what I'm looking for. So most of the return I get from selling my home will go towards REITS.
That sounds cool! Where you gonna travel?
4:28 while REITs are required to distribute as dividends 90% of their net income,it means, or at least in our country Phils., the year-end income or the URE, which excludes allocations for payables. This allows a REIT to acquire (in most instances from its sponsor), real properties that cost more than its 10% net income since payments can be done in yearly ammortizations, which are excluded from its net income as payables.
You can buy REITS during economic downturns to maximise $ per share. Because reits have very stable values you can clearly pick up a bargain! Be greedy when others are fearful.
Investments suck, cause I'm so addicted to them! I'm curious to check out your other videos.
EDIT: Just finished the video, thanks for the info! I've got some REIT investments already, but I must admit this was really helpful.
This is great. I was just thinking about making a video on $O to explain how REIT's work... looks like you (kinda) beat me too it 😬
Rick Daum hey there’s always room for improvement 😜
90% distribution rule is only in USA, not in Canada
When you think they will recover to pre covid levels? Taking a while... currently own IVR, TWO and NYMT
THANK YOU for SHARING this with the COMMUNITY....................Cheers
**
I just turned 19 and I'm looking into investing into REITs along with other invesments (ROTH IRA, stocks, forex, etc.) and this video was extremely helpful. Thanks for posting! I'd love to hear any advice anyone could provide
Brian Chang awesome 👏 and glad I could help out!
I wouldn't call it share dilution if they are raising money to buy more property because the additional shares is offset by the additional value from the property purchased.
4 hour work week, great book! Great video also
Yes! Thank you!
If I get a Target-Date-Fund Roth IRA will I be able to throw REIT stocks in there on Top of the plan or do i have to switch my TDF plan to an index IRA?
Amazing video! Keep it up man! Quick question, talking about REITS do you prefer individuals or ETFS such as VRE, XRE, etc.
Thanks! And for me, I would probably invest in a single company like I do with bank stocks rather than an ETF to possibly see more capital appreciation! :)
I've been so surprised how the high dividend funds have been doing. VNQ, SPYD...I thought the high yielding stocks and funds would be doing well but I guess not since they're mostly energy, financials and real estate.
And tech--VIG has been doing amazingly! Opposite of what I thought.
Right? Totally opposite to my thoughts going into the next recession. Thought the most overvalued tech companies would take a beating. Guess it all comes down to strongest balance sheets and "at-home" functionality of these companies.
Awesome info man! I am now smarter having watched this
Haha I'm glad to hear it!
I guess I am missing a key point. Everything I have read about passive income says to invest in REITS as a possible income source. They also say to put REITS into a retirement account or risk losing gains to taxes. How does that help me pay my monthly bills?
Nice video very well spoken, I own atleast a half dozen REITS and live off the dividends I get about 5500 a month after taxes which is a pretty good income I could not get on regular stocks I did not buy them for share value just for the dividends, one of them had lowered the dividend during covid { others did too } when the share price dropped by almost 2/3 rds fortunatley I bought most of my shares in the low point and they are now up by 90% but the dividend has not returned to the pre-covid level even with the share price approaching pre-covid they did raise the perferred back up but common only went up by 3 cents this video seems to offer very possible reasons for it thanks for the insight I have been debating dumping them due to the high share price it would take me a long time to make that kind of money from the dividend alone.
thats my plan too to live off the dividends, by the way, when markets crash will you just add to your REIT position, just buy more? lower the stock price the higher the yield gets.
How much investment do you have to generate that much of cash flow?
@@shrutighughal8171 with a 5.5% yield he has about 800k in Reits
Do you know if REIT'S are taxed differently if owned in an IRA or 401K account in the US? I would assume since its taxed deferred, you just pay the tax for the withdrawal .
Great information! When I learned about REITs my mind was BLOWN at how amazing they are, but those points are very valid.
Informative, Thank you. Subscribed
This is exactly what I was looking for, thank you! Video starts at 1:42
Jin B. You’re very welcome!
I own REITs in my Roth IRA and nearly everything else in regular accounts. Valid points about payouts. I don't own REIT ETFs though, All individual REITs. Investing in the right REITs makes sure the shares don't get unjustifiably diluted. Issuing equity for projects with a good cap rate and scheduled rent increases will result in great growth all around. If equity is instead used for projects with flat returns over time then it can be very harmful to shareholders.
Such great insights, share buy backs are nearly essential. Right now I like PFE, FMC and CPT. I'm a new RUclipsr and if anyone in the comments needs solid stock analysis, I can help. Thank you in advance!
Any thoughts on REITS vs bonds? Which is better and why?
Totally different securities however their prices are correlated because REITs are viewed as bond alternatives. E.g. They'll both drop in value if interest rates go up
They like to keep the stock value fixed by dilution. I setup dividend reinvestment. It creates a compounding effect, which is powerful. You then look at total equity you hold, not their stock value.
Great point on the compounding effect
When i invest with reits im not hoping for grwoth. I just enjoy free passive inc. for growth i go with tech stocks. I sometimes swing trade with reits cause i know they go up and down ! Easy money !
Pokiblue Yes. Only thing to watch out with REITs is that they can be get hugely over leveraged and (as the COVID crash showed) can dramatically lose value if there’s instability, even when property values haven’t budged. They’re actually sneaky because they can look very stable for long periods then suddenly tank. Now isn’t a bad time to buy in though, as they’ve been mostly corrected.
@@deraktdar i swing trade some reits looking at the RSi making some good 100$ swing. But yea as the REITs go down i use the dividends to lower down my average cost ! I have 1 swing trade account and 1 account that i never touch except increasing my positions. Im extremely patient and look for those opportunity when it drops, i try to detect a patern and secure a 75% chance swing trade.
What do you mean by "dilution"? Also, what do you mean by then looking at your total equity and not focusing on stock value?
i don't know what you were going for, but you pretty much just convinced me to invest in reits
Very well done video. The three concerns for REITs are things I've noticed many new investors (or even some who have invested for years) are unaware of. The issues with taxation and dilution will impact overall returns, and depending on our tax situation, we certainly need to be aware and planning accordingly.
Stock Investment Analysis absolutely! Thanks for dropping by again :)
Finally found a Canadian channel about investments 🙌🏾
The Plain Bagel is another investment-focused channel run by a Canadian.
@@philipmcniel4908 I found that channel by accident, I do follow him, but didn't even realize he was also Canadian, thanks!
Great video! I love reits for (future) income. VNQ, ABR, NRZ, GLPI, LTC, O, IIPR ...all in my portfolio...I might be a little heavy lol
Nice! Just like I’m heavy in banks hahah
I'm liking the hospital prison gown look.
I know too little of REITs to invest in it myself, but great video Nick! Learned a lot
Zero To Hero Investing glad I could help out!
Hi, Fantastic content! I have created a new REIT portfolio on M1 and I have 11 holdings in it. One of the holdings is VNQ and was wondering if it makes sense to have VNQ with my other REIT stocks.
I would add, Real estate is a good diversifier and " not correlated " to stocks
I would agree!
Not sure about where you are, but im Australia they are almost 100% correlated to the stock market.
@@GrimTTL Hello, I'm in Canada, but this article explains my initial comment. Correlation between real estate and stock market is around 0.2 to 0.4, which is relatively low. Reason is they can be affected by the same variables, but not at the same time. awealthofcommonsense.com/2018/09/is-real-estate-a-non-correlated-asset-class/
I don't know about Australian real estate, but anyway a diversified REIT will do the trick.
Hi,
I am a Canadian citizen but not a Canadian resident for tax purposes. (not US resident either).
Would you recommend I invest in REIT stocks and/or REIT ETFs? Or would you suggest a different route?
- Thank you
REITs are wonderful when your networth and income are still pretty low. Because tax isn't much of an issue there. But once your income is high, stocks could be better for legally reducing taxes.
Do stocks have lower taxes? Is this on a certain law? Sorry I'm pretty new at this :(
Pay your taxes. I rather buy reits and pay taxes
Pay your taxes
What if continue to invest those distributions back into buying more shared? How much that'll increase the total amount? Please share numbers if possible, thank you. Amazing video.
I have O and APLE so far, i would like to have DEA too
Good choices!
VNQ, O, DEA in my current holdings
I've been studying and looking hard into EPR especially at it's current price. This is a long term game. Everybody wants quick money (which is nice) but at the same time, preparing for the future is a must. With reinvesting your returns and steadily adding more shares you could easily be bringing in 1k/month or more potentially within 10-15 years if you're wise with your money. That does seem like a long time when you say think of it, but for younger people (20-30y.o.) then it will be just in time.
Thank you for your comment
EVO Brand, why did you choose EPR over O or WY? EPR seems vulnerable to pandemics which might be good times for buying into the company. O and WY seem to be pandemic proof, especially since people have to continue paying their rent regardless and what better way to social distance than in a forest.
One other thing which may not apply to many of us but I think would be good to know. The REITs I have, provide almost no credit [income] when trying to place a covered call option with them. With regular stock, I have been able to generate good income with covered calls especially when times were tough with that stock.
Awesome content Rick, i own, NRZ, IVR & RioCan, good to know about the info before investing in REITs, thanks for sharing, thumbs up
Right on!
Thanks for sharing this video, I found it super informative and as well easy to follow.
Glad it was helpful!
IVR, GPMT, NYMT, TWO, NRZ, ABR, AHH 💪🏻🐗
Very helpful guidence regarding REITS. Thank you for sharing the video.
Thank you for this useful video! I learned new things about REITs, especially about the concerns that come with those investments.
1. Dividends susceptible to dividend cut due to 90% payout ratio
2. Share dilution
3. Low or no capital appreciation
FOCUS ON * FUNDS FROM OPERATIONS * PER SHARE
That's very interesting. An excellent informative video.
Found your channel, I am looking at investing into REITS because I heard it's a great way to avoid certain taxes. Thanks for creating this video and also love the 4 hour workweek book int he ack ;) just earned my sub and like!
Joy Mae awesome thanks! Glad to have you here 😎
So glad I came across this video. Thanks for the info!
You got it man!
Love REITs for passive income! But definitely not capital gains 😂
Exactly!!
💯
Yea, something we're keeping our eye on... seems like key part of the value prop for REITs was their high distributions, which allowed you to justify the higher tax rate (being non-qualified dividends). Now that dividends are being slashed, net returns aren't looking so hot either 🤨
17% div 28% yoy capital growth.. its all about when you buy it and how good the managment is.
If the prices rise with inflation why would you not get capital gains.
I invested 10% of my portfolio on REITs for some passive income. Those investments are currently dragging my portfolio a little down because of the pandemic causing both the share value to drop along with the distribution to be reduced. I still like them for a little extra income without having to sell any of my other investments. I am not generating as much as before but I do not plan on selling them and taking a loss. I knew the risks before I invested and I am sticking to my plan.
Dollar cost average if it drops to reduce your average cost ;) nobody knows the botom of reits. But when it skyrocket youll be happy that you invested
I saw this Cryptonaid. com site online i invested with them and received cash out of $47000
Great video. I like my reits for the dividends.
Hey can you help me
Very clear explanation, thanks!
I am waiting for the market to go lower to buy VNQ.
Matilde C Calderon I might as well!
Since you can't day trade with your TFSA, I'm a bit confused about how these investments are to be made. I just made a TFSA account recently and am running it through a Robo-advisor (on Wealthsimple's platform). Sorry, I'm really new to all this stuff.
OMG, I thought you were doing this video inside a hospital...lol
Same
LMAOOOOOOO
Same, its the shirt and hair style
I thought the same thing lol
@@TheRajmoney Haha....the adult version of St. Jude you mean
Great UK REIT that is still at a lower share price is Custodian Reit (CREI). The have quite a handful of retail holdings but their mostly really solid companies that will bounce back once Corona passes, the rest is split across industrial, small office spaces and warehousing.
You should do a portfolio reveal at this point, think it would be insightful and calm some peoples nerves too :)
David Sitarek I’ve been thinking about it and yeah I might!
Agreed! Would love to see examples of portfolio reveal during this time
Does REITs work the same in all countries? I have 0% knowledge in investments so I'm trying to learn as much as I can.
Question: what if I’m considering starting an LLC and buying REITs and investing in dividend-paying company stocks? Would that reduce taxes and/or mitigate any of these risks? Great video! 👍
Thank you for this explanation.
Love the quarantine haircut man! I'm close to shaving it all off myself. Cheers!
Thanks Shane! That should make for an interesting video. Can't wait to see haha. Cheers
I thought he is a cancer patient and that he is in a hospital gown, and was making this video while waiting for treatment.
Then again he might be in a psyche ward.
Evan Erickson , Same here! 🤣 I thought he’s in a hospital gown! Bless his heart!
Solid work here - I have been considering but do not own any REITs in my portfolio. Largely because of the capital appreciation issue. You've got a new Sub!
Invest with Blev thanks a bunch man!
5% yield is actually not that great, REITs that pay around 10% are easy to find.
Not easy anymore, 8% yes. Most stock screeners will find over 10%, but unknown very small companies. Even the mReits are paying that high. Unless you have found some jewels
@@stevenobinator2229 some are under 10%, some are over so an overall portfolio average yield of 10% is what I'm driving at.
If the REIT sells more shares and immediately buys more real estate, there is not a dilution of shares because more assets are owned at the same time.
Investing in REITs in my tax advantaged accounts. Kind of scary these days. Might look into retirement communities, I don’t think the virus will do what people are thinking it will in those communities. Might look into the Royal Bank of Canada. Thanks!
(Relentlessly) 😉
Nice man! RBC will be a solid dividend payer through this quarantine I believe :)
I bought Agnc, NLY for the monthly dividend through Robinhood.
What would be your suggestion?
Hold or Sell?
And you're down? I would hold for the dividend and hope that the capital gains come back over the years! That's all you can do really... unless you feel confident it will come back, then average down
Most REITs raise funds by having Dividend Reinvestment Plans. So on the point of share dilution he isn't entirely correct. Any listed company will have share dilution by issuing new stock, not just REITs.
Like your video. Raised out some good point like share dilution and cash flow per share that we need to consider and concern.
Thank you!
wish I saw this before I bought a bunch of reits...
Peter Hsu they are still solid investments, but just some things to be aware of! I’m sure you’ll be fine
@@NickPeitsch ... I got RioCan and Allied (2 grand). But I didn't know anything about Reits until I saw your (Very Informative) video. A concerning factor is Amazon which may affect malls, and a recessionary environment may hurt office rentals. Maybe I should have dumped the money into TD bank stocks instead. Love your videos!
Peter Hsu that is a concern, but it’s similar to Tesla taking over the oil and gas industry - a long ways away! You should be fine with RioCan since they’re one of the biggest in Canada. And thank you!!
Im in the US. What if the distribution is on a DRIP. Does it still get taxed at the higher rate? I focus more on ETFs does this differ?
For as long as I can remember I’ve never settled with random brokerages I invest more effectively with the help of my fund manager Ronald B. Furey. Profits have been consistent and with his skills I don’t bother with the complexities of the market, I just invest and take profits
Does Mr. ronald teach you directly? how does one reach him for inquiries
@@Axelk8 No he doesn’t, he provides an investment management service where he trades on my behalf among other investors among his clientele list using his superior expertise. I take the extra effort to monitor the trades and learn a few professional tactics, normally I just provide substantial capital and stand by for withdrawals. This way it creates room for a more efficient and profitable trading process
@@Axelk8 You can reach out to him on what s-
app
+ 1 3 8 5 4 3 7 1 1 5 8
@@GarmanH Sounds interesting but how do you handle the risk of him failing to deliver or simply stealing from you? please forgive the awkward questioning
Is these are the con’s, I will invest in REIT tomorrow!
I've been watching quite a few videos on this and I still don't understand how REIT companies profit from this when they have to pay out 90% (in some cases 100%) of their earnings in distributions/dividends. I'd like to understand. Thanks
They dont have to pay tax
@@sixpackbodybuilding So the portions of their assets/business portfolio that is not related to REITs is tax exempt? and/or the 10% from profits they retain is also tax exempt? If so that makes sense on how they benefit from REITs
Same. Like why would a company want to become a REIT then if they just give away 90%+ of their taxable income…
Can’t really grow on 10%
REITs make up a huge chunk of my portfolio that pays out over 10% yearly..but I will use the dividend to buy aristocrats... I just wanted to yeild load so I have cash on hand in case I need it.
Really good informative breakdown of REITS just when I needed it. Many thanks
Very welcome!
Thanks so much! We are really enjoying your investment videos :)
Girlfriends Guide to Finance thanks!!
Personally, i believe everyone should have a decent chunk in cryptocurrency. Actively trading is like getting 10 years results in a couple of months
Yes just like the signal service at Traders Forte designed for beginners. Even though geared towards medium to high end net individuals and organisations, i still found it the most rewarding of all my assets, all others put together
Heard about the accuracy and ease of their signals before. How can I connect?
Website live support is a good starting point or telgeram (tradersfortesignals)
I started my bitcoin trading portfolio with guidance from traders forte with 3 btc and made over 11 in just above a month
Or losing most of it.
how likely will it be to drop 20%?? asked in April 2020...
I'm sorry I will stick to day trading and consulting with my advisor over traditional investing and retirement savings.
Finally a comment with brain, experience beats hard work, I aim to invest in both stocks and real estate and I've set aside $450K to put towards stocks and make enough to invest in real estate after a year, any advise for me?
@@edensisters9453 Just pick the right stocks and stay inconsistent.
@@edensisters9453 Well considering you are new to investing, I highly suggest you get in touch with a coach or mentor to guide you on the best possible steps to take, that’s the most ideal way to jump into the market in these uncertain times.
@Human Made can’t disclose too much , but yea I’ve been using a coach since October 2020, growing my portfolio from $175k to $600k approx. It is pretty straightforward, not as complicated as it used to be.
@@jobidding6895 That’s impressive! How could someone go about getting investment guidance from a coach like that. Would you mind sharing your coach's Info?
How do you feel about SPG and IVR?