Relatively safe REIT

Discussion in 'Stocks' started by unclescrooge, Jan 2, 2009.

  1. I'm looking for ETF REITs for my IRA for a long-term high yield. Anyone seen a reasonably safe one? I've reviewed Vanguard's VNQ, just not clear they won't continue to fall.
  2. I don't think anybody could point you to a REIT or any other stock for that matter where it's clear it won't continue to fall.
  3. Yes, but I don't think that will actually stop them from pointing...
  4. You could always check into some of the private REITS...(not publicly traded ones)...Most have clauses that allow you to sell your shares back to the holding company/Issuer for face value after some lockout period...The idea here is you are diversifying away from stock market risk while collecting/DRIPing yield...Most offer around 7% annual yield.....NOT LIQUID INVESTMENTS so check to make sure that the company is on sound footing and that they have a repurchase agreement in pay 10 per share and reinvest divs at 9.50 and can sell back your shares at 9.00 during 1st year, 9.25 during 2nd year, 9.5 during 3rd year, 9.75 during 4th year....Face for thereafter or until it goes public....
    I have a very tiny position in wifes account with Inland Real estate (Not the public IRC)....I did my nephew a favor....Yield steady but I image liquidity risk is there even though I have never tried to sell it...

    Check the section on risk of loss for more information....but ideally the principle should not fluctuate ..


    Long term chart looks like its one of the "safer" REITs. Not sure about balance sheet quality.