This is the sixth in our series of articles of ways to invest in real estate. In the previous installment, we reviewed how real estate index funds match up against REITs. Real estate indexes form the basis for other types of financial instruments besides mutual funds and exchange-traded funds. In the next three articles, we’ll discuss how real estate indexes underlie three … [Read more...] about REITs vs Real Estate Index Futures
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REITs vs Real Estate Index Funds
This is the fifth article in our series of articles on The Nine Ways To Invest In Real Estate and it focuses on real estate index funds. In the previous article, we compared REITs with real estate funds of various kinds. In this article, we sharpen our focus to concentrate on real estate index funds. An index is a list of things; in this case, a list of REITs or other types … [Read more...] about REITs vs Real Estate Index Funds
REITs vs Real Estate Funds
This is the fourth article in our series about ways to invest in real estate. So far, we’ve contrasted REITs to direct ownership of property, crowdfunding, and mortgage-backed securities as ways to invest in real estate. Our next category is real estate funds, and they are remarkably similar to REITs. All are pass-through securities backed by a collection of real estate … [Read more...] about REITs vs Real Estate Funds
REITs vs. Mortgage-Backed Securities
This is the fourth article in our series about ways to invest in real estate. In this article, we’ll compare mortgage-backed securities (MBS), also known as mortgage bonds, against REITs, specifically mortgage REITs (mREITs). MREITs differ from equity REITs in that they own real estate debt (mortgages and MBS) rather than real estate. Both mREITs and MBS provide cash flows … [Read more...] about REITs vs. Mortgage-Backed Securities
REITs vs Real Estate Crowdfunding
In this third article in our series on real estate investing, we examine real estate crowdfunding and how it compares to REIT investing. Both are passive investments that allow you to earn rental income and/or capital gains without direct involvement in property management. Although their goals are similar, they have distinctly different characteristics and risk … [Read more...] about REITs vs Real Estate Crowdfunding
REITs vs Direct Investing in Real Estate
This is the second article in our series about ways to invest in real estate. In the overview article, we described nine different options for real estate investors. Direct investing in real estate—real property—is the gold standard. Adding real property to your investment portfolio provides a source of income and capital gains separate from more conventional assets … [Read more...] about REITs vs Direct Investing in Real Estate
Weyerhaeuser Timber REIT
Overview Weyerhaeuser Company (NYSE: WY) began operations in 1900. It is an equity timber REIT and one of the world’s main private owners of timberland. As of February 2019, Weyerhaeuser was the 15th largest REIT in the FTSE Nareit All REITs Index with a market capitalization above $19 billion. Weyerhaeuser manages its timberlands on a sustainable basis, with an eye toward … [Read more...] about Weyerhaeuser Timber REIT
The Nine Ways to Invest in Real Estate
Sensible investors know that portfolios benefit from holding a wide variety of asset types because diversification lowers risk. Many experts believe that portfolios should hold up to 20% of their assets in real estate—distinct from ownership of your own home. That begs the question — how should you invest in real estate? In this overview, we’ll describe your options for … [Read more...] about The Nine Ways to Invest in Real Estate
REIT Net Asset Value
One of the most important questions facing prospective REIT investors is whether the units are fairly priced. REITs present special challenges in this regard compared to regular corporations. That’s because REITs are essentially a collection of real estate properties that throw off rental income, making them closer to bond mutual funds than to stock funds. But bond values are … [Read more...] about REIT Net Asset Value
REIT Leverage Metrics
The extent to which a REIT uses debt efficiently is a key factor when investors analyze risk/reward tradeoffs. Debt used wisely increases returns and helps boost growth. Underutilize debt and a REIT will fail to maximize its returns and growth potential. Overutilize debt and a REIT risks a reduced credit rating, thereby increasing the cost of capital and the risk insolvency. In … [Read more...] about REIT Leverage Metrics