Lux Investing

Upside to REIT investment is yield. What is the downside?

In other words, are there risks to investing in Real Estate Investment Trusts which offset the high yields which they provide?

Public Comments

  1. There is risk in any investment no matter which it is, stocks, municipal bonds, gold/silver or what ever. The higher the yield the higher the risk. Normally if a REIT is handled properly, you have a good REIT manager you will very seldom lose any large amounts of investment. Sometimes they will flatten out or take a dip depending on the interest rate at the time. You have to make sure they are doing or engaged in what your desires are. Do they invest in development, shopping malls, hotels, strip shopping centers, 2nd trust deeds or what ever is this compatible to the way you want to invest? What about their last year P&L, Did they offer a prospectus? Who is the manager and how long has he been the manager? I hope this has been of some use to you, good luck. "FIGHT ON"
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