REITs I Like Currently (O, LTC, STOR)

Hey before I continue with this article, I want to say that I am not a financial advisor and this is not financial advice. This is just a personal blog article mentioning some REITs that I really like and have invested in since 2016. I do have a background in Finance but that does not make me a professional. If you want to learn more about what REITs are click here. That said, here we go!

REITs are trusts that typically specialize in some sector of Real Estate and are only allowed to legally operate as a REIT if they fulfill certain regulatory standards. You can read more about that on Investopedia. REITs are typically a low cost way to start investing in Real Estate and they pay dividends with high yields which is what draws many investors. However, not all REITs were created equal. Sometimes there might be one cataclysmic moment that shifts the entire trust to the red and it might take years to get out of that hole. Meanwhile, they still have to pay dividends to their investors in order to maintain publicly traded status. However, there are still equally as many REITs that have cash flowed for decades; and still maintained appreciating dividends YoY even through the great financial crash. This will be a super easy read and I won't bore you with the details. You can read more about the nitty gritty on your own or hire a financial advisor to do the due diligence for you.

There are 3 REITs that I love and which I currently hold in my M1Finance portfolio (Sign up using my referral link and get $10). These REITs are $O $LTC and $STOR. $O and $LTC are both monthly dividend stocks that focus on building income for their shareholders by investing in triple net leased buildings for longterm retail companies and structured financing terms for long term healthcare companies that specialize in retirement homes and assisted living facilities. Both of these companies are expansionary and have low risk business models that are scalable with low to moderate risk. $STOR is a quarterly dividend earning stock that focuses on low risk net-leased single-tenant  properties. All of these companies have low beta, high yields, and great balance sheets.  They all have a track record of success, consistency and conservative growth models.

Real Estate is a very deep field. There are so many sectors within Real Estate that should definitely be explored. It doesn't always have to be daunting, full of huge risk, or even that complicated for that matter. Finding good REITs to buy or hold, or swing trade, is one option to get started in Real Estate. There is a commonality here, REITs were designed to create a system for building generational wealth and to expand at the same time. There is a benefit for all parties involved. This shows you how powerful Real Estate truly can be on a business and personal finance level. It shows that you too can someday buy up Real Estate properties and cash flow on a yearly basis by doing your due diligence and spreading your risk. Contact and meet with me in order to get started on your Real Estate journey for 2020 and beyond!

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REITs I Like Currently (O, LTC, STOR) REITs I Like Currently (O, LTC, STOR) Reviewed by Alex Sung on December 30, 2019 Rating: 5

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