5 Best REITs to Buy [Real Estate Investment Trust]

How to find real estate stocks and the best REITs to buy for massive cash flow including the one risk that will wipe you out!

I love real estate. It’s where I got my start and is truly one of the best wealth-builders you’ll ever find. I’ll show you the different types of real estate investment trusts, those REITs that trade just like stocks and give every investor the chance to be in this property investment. I’ll reveal why you need to be careful with mortgage REITs that pay dividends of 10% and higher and why I’m not investing in an entire property type in REITs.

We’ll look at how REIT returns have compared to other stocks and what real estate looks like. Then I’m going to share my five favorite REIT stocks for your portfolio for that diversification and returns.

It’s all part of our 11-video series seeking out the best stocks to buy in each sector of the economy. Build a rockstar portfolio with the best of breed players in each sector for diversification and double-digit returns. Check out the previous videos in the series!

I love talking about real estate investment trusts, REITs, because it is such a great way for main street investors to get some real estate in their portfolio. A REIT is a special type of company that owns real estate and gets a tax break for passing the majority of profits on to investors.

While equity REITs, so that’s a real estate investment trust that invests directly in real estate and owns property, while those are about 80% of the market, there’s also something called a mortgage REIT or mREIT. These pay huge dividends, sometimes around 10% and higher, but are also extremely risky because of the way they borrow and leverage their money. I'll reveal my favorite mortgage REIT in the video but be very careful when you're investing in these because they can drop fast and wipe out your dividend return.

If you want to talk returns, even through the worst real estate crash in U.S. history, REITs have way outperformed stocks. Here I took data from the National Association of REITs equity REIT index, the blue line, versus the S&P 500 index in red. Over 30 years to 2017, the total return on REITs is 10% a year versus a return just over 7% annualized for stocks.

There is one property type I’m avoiding though and those of you in the nation have heard me talk about this. Retail property; so we’re talking shopping malls, department stores and other types has been a value trap for years. The shopping mall REITs are trading well below the price of other REITs and showing much higher dividend yields and that’s dangerous.

2:20 What is a REIT?
3:10 Why You Have to Be Careful about REIT Dividends
4:15 How the Yield Curve affects REITs
4:40 Real Estate vs Stocks
6:40 Top REIT Funds for 2021
8:00 How to Pick Real Estate Investment Trusts to Buy
10:25 Best REIT Stocks for 2021

My Investing Recommendations 📈

Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #reits #reit #realestate

[WhispersOnLy]

Kimco is super solid, do the research, , it's a big winner for sure in my opinion. Currently $20.77 per share 💯

[TripSeen_]

I’m a beginner at REI and I think this is how I want to get started. I will eventually venture into lease-option agreements, buy and holds and probably a few fix and flips but I think starting here would a great move. I’ve got more research to do of course but so far, from what I’ve read, this is an excellent avenue for beginners.

[clarkewi]

Awesome pre Covid 19 presentation. I would be interested to hear your thoughts now post Covid 19 on REITS recommended here.

[DreadMike]

I got VNQ on my Acorns account and it just paid me a $0.15 dividend, I got nothing bad to say about VNQ, it pays me, dividends get automatically reinvest my dividends. I plan on buying me some REIT on my Robinhood, I want it to pay me either 1, 2, 3, 4 times a year/monthly or both. I plan on invest in Fundrise in the future.

[Johnnytrades]

Great video man, I love stocks that produce monthly dividends. My portfolio is 90% reits and right now im making $20 every month from just dividends. Which I'm reinvesting to buy more stocks. So cool. I love stocks.

[kshallcross]

Crown Castle is a solid cell tower REIT, i was thinking about buying some shares, but three weeks ago i decided to buy American Tower Corp (AMT) instead; so far so good.

[BL-gthn]

Awesome info! I'm very REIT heavy and long on ABR, BPY, CLDT, IVR and TWO

[pureumkim]

Thank you for the video- The stocks mentioned are good stocks but are priced quite well- For MREIT, I like NRZ, less leverage and higher yield. SKT also a good a contrarian play if you believe that outlets will be around for sometime. BRG and IRT are good plays on growing residential markets. IRT has been on a tear too bad that I waited too much. Thanks again for the video.

[zeppeinvest-stockmarketvid]

I would like to see O under $70 But still its attractive. I was just looking to ad an reit to my portfolio. This video has his timing :D Thanks for the value Jospeh

[Roosterbate]

I'm following your advice and I'm making money! RIETS all the way! Thank you Joe.

[diegowoborges]

Very nice!
I'm from Brazil and I've started to search and leand about REITs. We've something similar here and I love the cash flow that the Real State maket provides...

[rodrigoizolan]

Great video! I'm starting to invest in US Stocks and REITs now. Shoutout from Brazil

[cmccarrick]

5:40 told the future... brilliant! you're ahead of the market trends! pandemic accelerated the inevitable in this aspect.

[richardpratt]

Been in MPW for couple years now and bought IRT a year ago.Letting them both ride. Been watching FPI based on a recommendation from a friend(you).Not quite sold on it yet but this phase 1 of the trade deal might help it's case to pull the trigger on it.Running MPW through my dividend discount model (if I can analyze it like that).It's priced over $60 a share. I'm pretty confident with the assumption in my equation.

[livefree]

"I don't like retail REIT's."

Recommends O.

Great video.

I have a little of CCI, as well as a little AMT. They're both studs.

[SteveDaria]

Quality content and invaluable information that is going to help viewers crush it in 2020! 👍😎

[humbledservant]

I started following Duke and will look to invest in it and other stocks for this year.

[kaseywoody]

I would have added Medical Properties Trust (ticker symbol MPW) to that list.

[joekate]

I just got into stocks last month ive been buying A lot of dividend stocks and now im looking into reits

[StockInvestmentAnalysis]

You really can't go wrong with O. It is not a fast grower currently, but I believe it is very high quality. I prefer to focus on equity REITs as I see mREITs as far more risky.