The Dangers of REIT Investing: 3 MUST KNOWS Before Investing in Real Estate Investment Trusts!

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  • เผยแพร่เมื่อ 15 ต.ค. 2024
  • In this video, I discuss the dangers of investing in REITs and what you MUST know about REITs! Check out my Instagram (nickpeitschinvesting): bit.ly/3fkByXC
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    In this video, I discuss the dangers of REIT investing and the 3 things you need to know about REITs before you invest! REITs, otherwise known as Real Estate Investment Trusts, can be a great alternative investment to buying real estate. You don't need a down payment, you don't have to deal with tenants, and you can earn passive income through investing in REITs. Furthermore, REITs are excellent dividend paying stocks and actually have very high dividend yields! However, there are several concerns I have with buying REIT stocks that investors MUST understand before investing into REITs, which I'll be discussing in this video.
    Anyways, thank you for watching! If you did enjoy, please hit the LIKE button to support my channel - I would really appreciate it. Also, be sure to SUBSCRIBE for more weekly content on personal finance, business, and investing!
    Please note that I am not a financial advisor. I create these videos for educational and entertainment purposes only. Before investing, make sure you perform your own research and understand all of the risks involved!
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    Cheers,
    Investing Engineered
    Nick Peitsch, E.I.T.

ความคิดเห็น • 969

  • @NickPeitsch
    @NickPeitsch  4 ปีที่แล้ว +68

    Do you own any REITs in your portfolio? Let me know!

    • @kyraa4699
      @kyraa4699 4 ปีที่แล้ว +15

      Is O stock a REIT? If so, then I own that one haha

    • @quicksilver984
      @quicksilver984 4 ปีที่แล้ว +2

      I own EPR , SPG

    • @nagarajselvaraj8251
      @nagarajselvaraj8251 4 ปีที่แล้ว +3

      3500 macerich stocks

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +3

      Yeah it's a great one!

    • @kyraa4699
      @kyraa4699 4 ปีที่แล้ว +1

      @@NickPeitsch cool!

  • @RobertMichaelm4r
    @RobertMichaelm4r 27 วันที่ผ่านมา +260

    Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.

    • @BerthaHannahi7k
      @BerthaHannahi7k 27 วันที่ผ่านมา

      I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash

    • @Jameslindau8s
      @Jameslindau8s 27 วันที่ผ่านมา

      The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.

    • @EmmelineMathilda
      @EmmelineMathilda 27 วันที่ผ่านมา

      i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well.

    • @Jameslindau8s
      @Jameslindau8s 27 วันที่ผ่านมา

      NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @EmmelineMathilda
      @EmmelineMathilda 27 วันที่ผ่านมา

      I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

  • @NotyourBusiness-urto6
    @NotyourBusiness-urto6 2 หลายเดือนก่อน +306

    Housing crisis, health crisis, cost of living crisis, debt crisis, inflation crisis, middle East crisis. How many crises can a koala bear? I'm approaching retirement with comfortable millions, yet scared of a market crisis and how to benefit from a possible correction. Where do I best grow my money?

    • @freedomisEexpensive-08
      @freedomisEexpensive-08 2 หลายเดือนก่อน

      Diversify… T bills, CDs, Gold, dividend stocks, Municipal bonds, Bitcoin, Real estate, etc assets speak when cash has no value

    • @MrGravity304
      @MrGravity304 2 หลายเดือนก่อน

      I would advise the counsel of a seasoned financial pro. It may be expensive, but as the old saying goes "You get what you pay for." "Expert solutions require Expert providers" - my mantra

    • @MiddleclassAmerican-7220
      @MiddleclassAmerican-7220 2 หลายเดือนก่อน

      Truth is, investing with the help of a financial advisor set me up for life, retired as a millionaire at 55. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually. But if it wasn't for 2020 covid lockdown, I wouldn't have supplemented my income with stocks and alternative investments.

    • @lincoln-tser
      @lincoln-tser 2 หลายเดือนก่อน +1

      bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now... mind if I look up the professional guiding you please?

    • @MiddleclassAmerican-7220
      @MiddleclassAmerican-7220 2 หลายเดือนก่อน +3

      Melissa Elise Robinson is the licensed advisor I use. Just google the name and you’d find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, But so glad I did.

  • @Riggsnic_co
    @Riggsnic_co ปีที่แล้ว +265

    Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.

    • @maga_zineng7810
      @maga_zineng7810 ปีที่แล้ว +3

      Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.

    • @usieey
      @usieey ปีที่แล้ว +2

      It's time to make high value games! Discounted dividend stocks. Ever grateful to my CFP "Catherine Morrison Evan’’ I now have a six-figure REIT portfolio, which includes, but is not limited to; AMT, SPG & PSA.... I now have 606 shares of AMT which pays dividends of $3800 per year.

    • @Mohaimam316
      @Mohaimam316 ปีที่แล้ว +2

      I want to play the long term game with well diversified fund. Please how can i reach this CFP of yours?

    • @usieey
      @usieey ปีที่แล้ว +2

      Most likely, you can run a google search on her name and find her basic information online; you are welcome to do further study.

    • @Mohaimam316
      @Mohaimam316 ปีที่แล้ว +2

      Thanks for this tip. Her website popped up on the first page immediately I searched her, I read through her resume and it seems pretty tight. So, I dropped a message & hopefully she replies soon.

  • @GeorgestraitStriat
    @GeorgestraitStriat 6 วันที่ผ่านมา +324

    Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family

    • @Donnafrank-k6e
      @Donnafrank-k6e 6 วันที่ผ่านมา

      Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

    • @GeorgestraitStriat
      @GeorgestraitStriat 6 วันที่ผ่านมา

      @@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.

    • @Donnafrank-k6e
      @Donnafrank-k6e 6 วันที่ผ่านมา

      @@GeorgestraitStriat Oh please I’d love that. Thanks!.

    • @GeorgestraitStriat
      @GeorgestraitStriat 6 วันที่ผ่านมา

      @@Donnafrank-k6e Clementina Abate Russo is her name.

    • @GeorgestraitStriat
      @GeorgestraitStriat 6 วันที่ผ่านมา

      Lookup with her name on the webpage.

  • @askjussi
    @askjussi ปีที่แล้ว +15

    The most important risk is management. Make sure to only invest in REITs that have good management teams. Many suffer significant conflicts of interest, especially in Canada. Stay away from REITs that are externally managed, unless they have very high insider ownership. That on its own should help you avoid many losers. I will soon cover some of the REITs to avoid on my channel. Thanks for the great video!

  • @UnHermitano
    @UnHermitano 4 ปีที่แล้ว +22

    I own a reit with a historic 13% ea in a non taxable account, ecah dividends is reinvested in the reit. Great investment.

  • @maxwells2602
    @maxwells2602 3 ปีที่แล้ว +10

    It is easy to understand the value of reits because the property is regularly independently valued. You can buy reits when the share price is below the Net Tangible Asset value and sell when it is above the NTA. There is also a lot of security that comes from the long leases. And it is a great way to hedge against inflation, and now we are seeing a lot of money printing.

    • @firsargentum5920
      @firsargentum5920 ปีที่แล้ว

      Yes, plus you get paid the distribution while you wait for the NTA to recover to its fair value which it usually does at some point in the cycle. Personally I own some REITS and try to reinvest the distributions in the REIT also so that value of the holding compounds even in the absence of any capital appreciation in the share price.

  • @nonameo6884
    @nonameo6884 ปีที่แล้ว

    Thank you for the information. Nice delivery. You have a beautiful smile. I don't have REITs, but I'm thinking about it.

  • @PierceJPeterson
    @PierceJPeterson 4 ปีที่แล้ว +12

    Very important point about the distributions. That's exactly why I only own REITs in a tax-advantaged account

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +2

      You're doing it right, Pierce!

    • @quicksilver984
      @quicksilver984 4 ปีที่แล้ว

      Pierce Jordan - Personal Finance what you mean by tax advantage account ? You mean HSA or IRA ?

    • @PierceJPeterson
      @PierceJPeterson 4 ปีที่แล้ว

      Quick Silver yes!

    • @quicksilver984
      @quicksilver984 4 ปีที่แล้ว

      Pierce Jordan - Personal Finance thank you sir

    • @tolovefreely
      @tolovefreely 4 ปีที่แล้ว

      I’m totally new to this. But what happens if you don’t own a reit in a tax advantages account? Can I transfer them to a tax advantages account?

  • @HeraclesPorsche
    @HeraclesPorsche ปีที่แล้ว

    i don't know what you were going for, but you pretty much just convinced me to invest in reits

  • @sumitbasnet1663
    @sumitbasnet1663 4 ปีที่แล้ว +4

    Very informative video. First channel I have subscribed to on TH-cam.
    Most REITs are at all time lows right now, so I bought a lot of them recently.

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Sumit Basnet nice thanks!!

  • @ygbodybuilder3023
    @ygbodybuilder3023 2 ปีที่แล้ว

    Hey Nick do you agree this is the perfect time to buy into REITs everything seems at its lowest to me

  • @robertyoung406
    @robertyoung406 3 ปีที่แล้ว +5

    I was literally about to comment, "Does a TFSA protect you from being taxed on REIT dividends/distributions" until 2:38 played lol.
    To anyone reading and haven't gotten to this part yet, yes the TFSA will protect you from being taxed on REIT dividends aka distributions.

  • @yazzazin
    @yazzazin ปีที่แล้ว

    Informative, Thank you. Subscribed

  • @ozairraja9379
    @ozairraja9379 2 ปีที่แล้ว +3

    Great video, people always get blinded by the benefits of an investment ignoring the drawbacks. Thank you for informing us of these.

  • @COSMICLOUNGEMUZIKCAFE
    @COSMICLOUNGEMUZIKCAFE 11 หลายเดือนก่อน

    THANK YOU for SHARING this with the COMMUNITY....................Cheers
    **

  • @jimfarmer7811
    @jimfarmer7811 3 ปีที่แล้ว +6

    I have several RIETs in my portfolio and I have generally done well with them. But I have also taken my largest loss on any investment when one of the RIETs dropped 75% over the last year. I'm holding on to it for the time being since I think it's over sold. But I know I will never be whole on this investment.

  • @antoinejutras-carignan8710
    @antoinejutras-carignan8710 4 ปีที่แล้ว +17

    I invested around 5% of my saving in vanguand reits ETF (VRE) and I didn't knew much about reits. Thank you for the information! You have a new subscriber! What do you think about bitcoin? Would you allow a part of your portfolio to bitcoin?

    • @TESkyrimizer
      @TESkyrimizer 4 ปีที่แล้ว +2

      I would have bought bitcoin but I wouldnt buy bitcoin 🤡

  • @dustingoldsworthy7303
    @dustingoldsworthy7303 4 ปีที่แล้ว +6

    You can buy REITS during economic downturns to maximise $ per share. Because reits have very stable values you can clearly pick up a bargain! Be greedy when others are fearful.

  • @esq0828
    @esq0828 5 หลายเดือนก่อน

    4:28 while REITs are required to distribute as dividends 90% of their net income,it means, or at least in our country Phils., the year-end income or the URE, which excludes allocations for payables. This allows a REIT to acquire (in most instances from its sponsor), real properties that cost more than its 10% net income since payments can be done in yearly ammortizations, which are excluded from its net income as payables.

  • @PassiveIncomeTom
    @PassiveIncomeTom 4 ปีที่แล้ว +26

    *I own a good amount of REITs. Some lowered their dividends.*

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +5

      Passive Income Tom nice Tom 👍 great passive income vehicles!

    • @jaewhite2462
      @jaewhite2462 4 ปีที่แล้ว +1

      Yea they have been cutting in half like crazy right now

    • @RemoteVentures
      @RemoteVentures 4 ปีที่แล้ว +2

      We're keeping our eye on this too... dividends on REITs were always taxed at higher rates (as ordinary income), but that was fine b/c they maintained higher distributions. Now that dividends are being slashed, the calculus is looking a little different 🤔

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Remote Ventures hopefully some are stable!

    • @nathanieladams4173
      @nathanieladams4173 4 ปีที่แล้ว

      So true but it is a long game Passive Income Tom

  • @maxwells2602
    @maxwells2602 3 ปีที่แล้ว

    I wouldn't call it share dilution if they are raising money to buy more property because the additional shares is offset by the additional value from the property purchased.

  • @tscottmvp5
    @tscottmvp5 4 ปีที่แล้ว +14

    4 hour work week, great book! Great video also

  • @kinasek
    @kinasek ปีที่แล้ว +1

    90% distribution rule is only in USA, not in Canada

  • @markcyrus7898
    @markcyrus7898 3 ปีที่แล้ว +26

    I'm based in the UK, investing in stocks and REITs, UK-based and US-based & some shares. My US-based stockbroker allows me to invest internationally. Thanks for sharing this info!

    • @ryanwickham1707
      @ryanwickham1707 3 ปีที่แล้ว +3

      Always great to invest in internationally, how passive has this been for you investing from the UK.

    • @niyashaasad369
      @niyashaasad369 3 ปีที่แล้ว

      Thinking of an investment that can make good passive income, dividend and REITs ain't a bad idea.

    • @markcyrus7898
      @markcyrus7898 3 ปีที่แล้ว +2

      @@ryanwickham1707 my portfolio has seen a significant increase over the years investing in the market, my stockbroker Jeff Dakin whose in charge of growing my portfolio has always ensured there are numerous opportunities to diversify my Investments.

    • @markcyrus7898
      @markcyrus7898 3 ปีที่แล้ว

      @@niyashaasad369 true.

    • @rachealjones6039
      @rachealjones6039 3 ปีที่แล้ว

      @@markcyrus7898 I have always wanted to own some stocks which would serve as a means of passive income, would be glad if I can be in contact with your broker.

  • @Crusty_Camper
    @Crusty_Camper 3 ปีที่แล้ว

    That's very interesting. An excellent informative video.

  • @TheRDGuarantee
    @TheRDGuarantee 4 ปีที่แล้ว +29

    This is great. I was just thinking about making a video on $O to explain how REIT's work... looks like you (kinda) beat me too it 😬

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Rick Daum hey there’s always room for improvement 😜

  • @mroctober3583
    @mroctober3583 3 ปีที่แล้ว

    If I get a Target-Date-Fund Roth IRA will I be able to throw REIT stocks in there on Top of the plan or do i have to switch my TDF plan to an index IRA?

  • @noobinvestor
    @noobinvestor 4 ปีที่แล้ว +5

    Awesome info man! I am now smarter having watched this

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Haha I'm glad to hear it!

  • @grit1679
    @grit1679 ปีที่แล้ว

    Great video. Sensible without a bunch of dramatic hype.

  • @ariefraiser140
    @ariefraiser140 4 ปีที่แล้ว +6

    About 80 percent of my networth is in stocks with the rest being in bonds and the value of my house. I plan on retiring young and selling my home to travel the world rather than renting it out. Don't want to deal with the hassle of renting. At the same time I do want to have some ownership of real estate in the US and REITS fit exactly what I'm looking for. So most of the return I get from selling my home will go towards REITS.

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +1

      That sounds cool! Where you gonna travel?

  • @QuarterKnight01
    @QuarterKnight01 3 ปีที่แล้ว +2

    Investments suck, cause I'm so addicted to them! I'm curious to check out your other videos.
    EDIT: Just finished the video, thanks for the info! I've got some REIT investments already, but I must admit this was really helpful.

  • @duarteguerra8306
    @duarteguerra8306 4 ปีที่แล้ว +3

    When you think they will recover to pre covid levels? Taking a while... currently own IVR, TWO and NYMT

  • @tommyaustin12
    @tommyaustin12 3 ปีที่แล้ว

    Very nice video, thanks!

  • @brianchang1436
    @brianchang1436 4 ปีที่แล้ว +15

    I just turned 19 and I'm looking into investing into REITs along with other invesments (ROTH IRA, stocks, forex, etc.) and this video was extremely helpful. Thanks for posting! I'd love to hear any advice anyone could provide

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Brian Chang awesome 👏 and glad I could help out!

  • @HeyYouSA
    @HeyYouSA ปีที่แล้ว

    I guess I am missing a key point. Everything I have read about passive income says to invest in REITS as a possible income source. They also say to put REITS into a retirement account or risk losing gains to taxes. How does that help me pay my monthly bills?

  • @JessicaHicks
    @JessicaHicks 4 ปีที่แล้ว +3

    Great video. I like my reits for the dividends.

    • @higgs878
      @higgs878 3 ปีที่แล้ว +1

      Hey can you help me

  • @campelodemagalhaes
    @campelodemagalhaes ปีที่แล้ว

    Is these are the con’s, I will invest in REIT tomorrow!

  • @alext818
    @alext818 4 ปีที่แล้ว +5

    I have O and APLE so far, i would like to have DEA too

  • @izik6894
    @izik6894 3 ปีที่แล้ว

    Hi, Fantastic content! I have created a new REIT portfolio on M1 and I have 11 holdings in it. One of the holdings is VNQ and was wondering if it makes sense to have VNQ with my other REIT stocks.

  • @zerotoheroinvesting8992
    @zerotoheroinvesting8992 4 ปีที่แล้ว +4

    I know too little of REITs to invest in it myself, but great video Nick! Learned a lot

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +1

      Zero To Hero Investing glad I could help out!

  • @cristiandlr
    @cristiandlr 3 ปีที่แล้ว

    Very clear explanation, thanks!

  • @juandavidmunevar2586
    @juandavidmunevar2586 4 ปีที่แล้ว +7

    Amazing video! Keep it up man! Quick question, talking about REITS do you prefer individuals or ETFS such as VRE, XRE, etc.

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +3

      Thanks! And for me, I would probably invest in a single company like I do with bank stocks rather than an ETF to possibly see more capital appreciation! :)

  • @whatsleft0
    @whatsleft0 3 ปีที่แล้ว

    Thank you for this explanation.

  • @tradingfundamentals
    @tradingfundamentals ปีที่แล้ว +1

    Such great insights, share buy backs are nearly essential. Right now I like PFE, FMC and CPT. I'm a new TH-camr and if anyone in the comments needs solid stock analysis, I can help. Thank you in advance!

  • @The-Great-Badge
    @The-Great-Badge 7 หลายเดือนก่อน

    Do you know if REIT'S are taxed differently if owned in an IRA or 401K account in the US? I would assume since its taxed deferred, you just pay the tax for the withdrawal .

  • @og7952
    @og7952 4 ปีที่แล้ว +6

    I would add, Real estate is a good diversifier and " not correlated " to stocks

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      I would agree!

    • @GrimTTL
      @GrimTTL 4 ปีที่แล้ว +1

      Not sure about where you are, but im Australia they are almost 100% correlated to the stock market.

    • @og7952
      @og7952 4 ปีที่แล้ว +1

      @@GrimTTL Hello, I'm in Canada, but this article explains my initial comment. Correlation between real estate and stock market is around 0.2 to 0.4, which is relatively low. Reason is they can be affected by the same variables, but not at the same time. awealthofcommonsense.com/2018/09/is-real-estate-a-non-correlated-asset-class/
      I don't know about Australian real estate, but anyway a diversified REIT will do the trick.

  • @motivateinmotion5073
    @motivateinmotion5073 3 ปีที่แล้ว +1

    VNQ, O, DEA in my current holdings

  • @TheWedeShow
    @TheWedeShow 4 ปีที่แล้ว +6

    Great video! I love reits for (future) income. VNQ, ABR, NRZ, GLPI, LTC, O, IIPR ...all in my portfolio...I might be a little heavy lol

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +2

      Nice! Just like I’m heavy in banks hahah

  • @rentospropertymanagementso4895
    @rentospropertymanagementso4895 4 ปีที่แล้ว

    Very helpful guidence regarding REITS. Thank you for sharing the video.

  • @jaymortensen642
    @jaymortensen642 2 ปีที่แล้ว +8

    Nice video very well spoken, I own atleast a half dozen REITS and live off the dividends I get about 5500 a month after taxes which is a pretty good income I could not get on regular stocks I did not buy them for share value just for the dividends, one of them had lowered the dividend during covid { others did too } when the share price dropped by almost 2/3 rds fortunatley I bought most of my shares in the low point and they are now up by 90% but the dividend has not returned to the pre-covid level even with the share price approaching pre-covid they did raise the perferred back up but common only went up by 3 cents this video seems to offer very possible reasons for it thanks for the insight I have been debating dumping them due to the high share price it would take me a long time to make that kind of money from the dividend alone.

    • @petejames1326
      @petejames1326 2 ปีที่แล้ว +2

      thats my plan too to live off the dividends, by the way, when markets crash will you just add to your REIT position, just buy more? lower the stock price the higher the yield gets.

    • @shrutighughal8171
      @shrutighughal8171 2 ปีที่แล้ว +2

      How much investment do you have to generate that much of cash flow?

    • @vlogcity1111
      @vlogcity1111 2 ปีที่แล้ว +1

      @@shrutighughal8171 with a 5.5% yield he has about 800k in Reits

  • @1JJONES
    @1JJONES 2 ปีที่แล้ว +1

    If the REIT sells more shares and immediately buys more real estate, there is not a dilution of shares because more assets are owned at the same time.

  • @ChampagneCents
    @ChampagneCents 4 ปีที่แล้ว +8

    Great information! When I learned about REITs my mind was BLOWN at how amazing they are, but those points are very valid.

  • @saurabhmarne9595
    @saurabhmarne9595 4 ปีที่แล้ว

    What if continue to invest those distributions back into buying more shared? How much that'll increase the total amount? Please share numbers if possible, thank you. Amazing video.

  • @jason41a
    @jason41a 3 ปีที่แล้ว +15

    REITs are wonderful when your networth and income are still pretty low. Because tax isn't much of an issue there. But once your income is high, stocks could be better for legally reducing taxes.

    • @malva9092
      @malva9092 3 ปีที่แล้ว +2

      Do stocks have lower taxes? Is this on a certain law? Sorry I'm pretty new at this :(

    • @christisgodd
      @christisgodd 2 ปีที่แล้ว +1

      Pay your taxes. I rather buy reits and pay taxes

    • @christisgodd
      @christisgodd 2 ปีที่แล้ว

      Pay your taxes

  • @felixfrost1564
    @felixfrost1564 2 ปีที่แล้ว

    Apartments and condo prices falling off the cliff where I live but inflation is sky high

  • @ShaneHummus
    @ShaneHummus 4 ปีที่แล้ว +6

    Love the quarantine haircut man! I'm close to shaving it all off myself. Cheers!

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Thanks Shane! That should make for an interesting video. Can't wait to see haha. Cheers

    • @evanerickson7416
      @evanerickson7416 4 ปีที่แล้ว +1

      I thought he is a cancer patient and that he is in a hospital gown, and was making this video while waiting for treatment.

    • @evanerickson7416
      @evanerickson7416 4 ปีที่แล้ว

      Then again he might be in a psyche ward.

    • @rubyus7332
      @rubyus7332 4 ปีที่แล้ว +1

      Evan Erickson , Same here! 🤣 I thought he’s in a hospital gown! Bless his heart!

  • @djben928
    @djben928 2 ปีที่แล้ว

    Thank you for sharing. I learned a lot.

  • @VictorEboa
    @VictorEboa 4 ปีที่แล้ว +4

    Awesome content Rick, i own, NRZ, IVR & RioCan, good to know about the info before investing in REITs, thanks for sharing, thumbs up

  • @jotgolf69
    @jotgolf69 2 ปีที่แล้ว

    Excellent video. Very informative 👍

  • @Maderon
    @Maderon 4 ปีที่แล้ว +5

    I am waiting for the market to go lower to buy VNQ.

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +2

      Matilde C Calderon I might as well!

  • @BuenosDiasYYLS
    @BuenosDiasYYLS 3 ปีที่แล้ว

    Like your video. Raised out some good point like share dilution and cash flow per share that we need to consider and concern.

  • @MhKara
    @MhKara 4 ปีที่แล้ว +8

    Thank you for this useful video! I learned new things about REITs, especially about the concerns that come with those investments.

  • @Pacificbertaboy
    @Pacificbertaboy 3 ปีที่แล้ว

    So glad I came across this video. Thanks for the info!

  • @joel4210
    @joel4210 4 ปีที่แล้ว +14

    IVR, GPMT, NYMT, TWO, NRZ, ABR, AHH 💪🏻🐗

  • @SK-qj3oj
    @SK-qj3oj 3 ปีที่แล้ว

    1. Dividends susceptible to dividend cut due to 90% payout ratio
    2. Share dilution
    3. Low or no capital appreciation

  • @teo88888able
    @teo88888able 4 ปีที่แล้ว +3

    FOCUS ON * FUNDS FROM OPERATIONS * PER SHARE

  • @tiffanyrodriguez6344
    @tiffanyrodriguez6344 2 ปีที่แล้ว

    Wow! Great information

    • @NickPeitsch
      @NickPeitsch  2 ปีที่แล้ว

      Glad it was helpful!

  • @StockInvestmentAnalysis
    @StockInvestmentAnalysis 4 ปีที่แล้ว +19

    Very well done video. The three concerns for REITs are things I've noticed many new investors (or even some who have invested for years) are unaware of. The issues with taxation and dilution will impact overall returns, and depending on our tax situation, we certainly need to be aware and planning accordingly.

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +2

      Stock Investment Analysis absolutely! Thanks for dropping by again :)

  • @netjavier7559
    @netjavier7559 3 ปีที่แล้ว +1

    I am half-way in reading The Intelligent Investor!

  • @davidsitarek4107
    @davidsitarek4107 4 ปีที่แล้ว +8

    You should do a portfolio reveal at this point, think it would be insightful and calm some peoples nerves too :)

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +2

      David Sitarek I’ve been thinking about it and yeah I might!

    • @RyanThomasWoods
      @RyanThomasWoods 4 ปีที่แล้ว

      Agreed! Would love to see examples of portfolio reveal during this time

  • @lafettemorgan6676
    @lafettemorgan6676 3 หลายเดือนก่อน

    So first I have to buy a Roth then fund the Reit through the Roth.

  • @joymae
    @joymae 4 ปีที่แล้ว +13

    Found your channel, I am looking at investing into REITS because I heard it's a great way to avoid certain taxes. Thanks for creating this video and also love the 4 hour workweek book int he ack ;) just earned my sub and like!

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Joy Mae awesome thanks! Glad to have you here 😎

  • @Adrian-cn5rk
    @Adrian-cn5rk 3 ปีที่แล้ว +1

    Finally found a Canadian channel about investments 🙌🏾

    • @philipmcniel4908
      @philipmcniel4908 3 ปีที่แล้ว

      The Plain Bagel is another investment-focused channel run by a Canadian.

    • @Adrian-cn5rk
      @Adrian-cn5rk 3 ปีที่แล้ว +1

      @@philipmcniel4908 I found that channel by accident, I do follow him, but didn't even realize he was also Canadian, thanks!

  • @hayes14220
    @hayes14220 3 ปีที่แล้ว +106

    Personally, i believe everyone should have a decent chunk in cryptocurrency. Actively trading is like getting 10 years results in a couple of months

    • @KamilekCSS
      @KamilekCSS 3 ปีที่แล้ว

      Yes just like the signal service at Traders Forte designed for beginners. Even though geared towards medium to high end net individuals and organisations, i still found it the most rewarding of all my assets, all others put together

    • @21bennyboi
      @21bennyboi 3 ปีที่แล้ว

      Heard about the accuracy and ease of their signals before. How can I connect?

    • @IvanNotSoTerrible
      @IvanNotSoTerrible 3 ปีที่แล้ว

      Website live support is a good starting point or telgeram (tradersfortesignals)

    • @MrsDjamila82
      @MrsDjamila82 3 ปีที่แล้ว +1

      I started my bitcoin trading portfolio with guidance from traders forte with 3 btc and made over 11 in just above a month

    • @juicerlol
      @juicerlol 2 ปีที่แล้ว +2

      Or losing most of it.

  • @mckessa17
    @mckessa17 2 ปีที่แล้ว

    If you can pick up a reit at its lowest they are an amazing investment..Buy them in your TFSA.

  • @MarshmilloJB
    @MarshmilloJB 4 ปีที่แล้ว +58

    This is exactly what I was looking for, thank you! Video starts at 1:42

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +1

      Jin B. You’re very welcome!

  • @sonyapeitsch36
    @sonyapeitsch36 3 ปีที่แล้ว +1

    Awesome info!

  • @deraktdar
    @deraktdar 4 ปีที่แล้ว +48

    They like to keep the stock value fixed by dilution. I setup dividend reinvestment. It creates a compounding effect, which is powerful. You then look at total equity you hold, not their stock value.

    • @davidl4686
      @davidl4686 4 ปีที่แล้ว +4

      Great point on the compounding effect

    • @pokiblue5870
      @pokiblue5870 4 ปีที่แล้ว +6

      When i invest with reits im not hoping for grwoth. I just enjoy free passive inc. for growth i go with tech stocks. I sometimes swing trade with reits cause i know they go up and down ! Easy money !

    • @deraktdar
      @deraktdar 4 ปีที่แล้ว +3

      Pokiblue Yes. Only thing to watch out with REITs is that they can be get hugely over leveraged and (as the COVID crash showed) can dramatically lose value if there’s instability, even when property values haven’t budged. They’re actually sneaky because they can look very stable for long periods then suddenly tank. Now isn’t a bad time to buy in though, as they’ve been mostly corrected.

    • @pokiblue5870
      @pokiblue5870 4 ปีที่แล้ว +1

      @@deraktdar i swing trade some reits looking at the RSi making some good 100$ swing. But yea as the REITs go down i use the dividends to lower down my average cost ! I have 1 swing trade account and 1 account that i never touch except increasing my positions. Im extremely patient and look for those opportunity when it drops, i try to detect a patern and secure a 75% chance swing trade.

    • @ANDREWP122
      @ANDREWP122 3 ปีที่แล้ว

      What do you mean by "dilution"? Also, what do you mean by then looking at your total equity and not focusing on stock value?

  • @chrisdsx5
    @chrisdsx5 2 ปีที่แล้ว

    REITs make up a huge chunk of my portfolio that pays out over 10% yearly..but I will use the dividend to buy aristocrats... I just wanted to yeild load so I have cash on hand in case I need it.

  • @jakewebster755
    @jakewebster755 4 ปีที่แล้ว +22

    Question: what if I’m considering starting an LLC and buying REITs and investing in dividend-paying company stocks? Would that reduce taxes and/or mitigate any of these risks? Great video! 👍

  • @fanglin524
    @fanglin524 3 ปีที่แล้ว

    Thank you for this information! I will send it.

  • @evobrand4060
    @evobrand4060 4 ปีที่แล้ว +12

    I've been studying and looking hard into EPR especially at it's current price. This is a long term game. Everybody wants quick money (which is nice) but at the same time, preparing for the future is a must. With reinvesting your returns and steadily adding more shares you could easily be bringing in 1k/month or more potentially within 10-15 years if you're wise with your money. That does seem like a long time when you say think of it, but for younger people (20-30y.o.) then it will be just in time.

    • @Hanzi2u
      @Hanzi2u 3 ปีที่แล้ว

      Thank you for your comment

    • @johngiraltbedford
      @johngiraltbedford 3 ปีที่แล้ว

      EVO Brand, why did you choose EPR over O or WY? EPR seems vulnerable to pandemics which might be good times for buying into the company. O and WY seem to be pandemic proof, especially since people have to continue paying their rent regardless and what better way to social distance than in a forest.

  • @ChrisInvests
    @ChrisInvests 4 ปีที่แล้ว +1

    I've been so surprised how the high dividend funds have been doing. VNQ, SPYD...I thought the high yielding stocks and funds would be doing well but I guess not since they're mostly energy, financials and real estate.

    • @ChrisInvests
      @ChrisInvests 4 ปีที่แล้ว

      And tech--VIG has been doing amazingly! Opposite of what I thought.

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Right? Totally opposite to my thoughts going into the next recession. Thought the most overvalued tech companies would take a beating. Guess it all comes down to strongest balance sheets and "at-home" functionality of these companies.

  • @MrDarknesstolight
    @MrDarknesstolight 4 ปีที่แล้ว +5

    Most REITs raise funds by having Dividend Reinvestment Plans. So on the point of share dilution he isn't entirely correct. Any listed company will have share dilution by issuing new stock, not just REITs.

  • @ntc_108
    @ntc_108 3 ปีที่แล้ว +2

    I own REITs in my Roth IRA and nearly everything else in regular accounts. Valid points about payouts. I don't own REIT ETFs though, All individual REITs. Investing in the right REITs makes sure the shares don't get unjustifiably diluted. Issuing equity for projects with a good cap rate and scheduled rent increases will result in great growth all around. If equity is instead used for projects with flat returns over time then it can be very harmful to shareholders.

  • @petrosianus
    @petrosianus 4 ปีที่แล้ว +6

    wish I saw this before I bought a bunch of reits...

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +1

      Peter Hsu they are still solid investments, but just some things to be aware of! I’m sure you’ll be fine

    • @petrosianus
      @petrosianus 4 ปีที่แล้ว

      @@NickPeitsch ... I got RioCan and Allied (2 grand). But I didn't know anything about Reits until I saw your (Very Informative) video. A concerning factor is Amazon which may affect malls, and a recessionary environment may hurt office rentals. Maybe I should have dumped the money into TD bank stocks instead. Love your videos!

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +1

      Peter Hsu that is a concern, but it’s similar to Tesla taking over the oil and gas industry - a long ways away! You should be fine with RioCan since they’re one of the biggest in Canada. And thank you!!

  • @businesstwentytwelve7615
    @businesstwentytwelve7615 ปีที่แล้ว

    I'm liking the hospital prison gown look.

  • @pamlibey4581
    @pamlibey4581 4 ปีที่แล้ว +117

    Love REITs for passive income! But definitely not capital gains 😂

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +17

      Exactly!!

    • @MarcGuberti
      @MarcGuberti 4 ปีที่แล้ว

      💯

    • @RemoteVentures
      @RemoteVentures 4 ปีที่แล้ว +2

      Yea, something we're keeping our eye on... seems like key part of the value prop for REITs was their high distributions, which allowed you to justify the higher tax rate (being non-qualified dividends). Now that dividends are being slashed, net returns aren't looking so hot either 🤨

    • @xxxccc4034
      @xxxccc4034 4 ปีที่แล้ว +7

      17% div 28% yoy capital growth.. its all about when you buy it and how good the managment is.

    • @wilsonbill5533
      @wilsonbill5533 4 ปีที่แล้ว +10

      If the prices rise with inflation why would you not get capital gains.

  • @timpoolsbeanie2296
    @timpoolsbeanie2296 3 ปีที่แล้ว +1

    Just invested a ton into 8 different reit companies. I am alright not having capital gains since I am going to be reinvesting my dividends anyways.

  • @CM_Burns
    @CM_Burns 3 ปีที่แล้ว +9

    5% yield is actually not that great, REITs that pay around 10% are easy to find.

    • @stevenobinator2229
      @stevenobinator2229 2 ปีที่แล้ว +1

      Not easy anymore, 8% yes. Most stock screeners will find over 10%, but unknown very small companies. Even the mReits are paying that high. Unless you have found some jewels

    • @CM_Burns
      @CM_Burns 2 ปีที่แล้ว +1

      @@stevenobinator2229 some are under 10%, some are over so an overall portfolio average yield of 10% is what I'm driving at.

  • @gerardlead9321
    @gerardlead9321 3 ปีที่แล้ว +2

    Any thoughts on REITS vs bonds? Which is better and why?

    • @elienader480
      @elienader480 3 ปีที่แล้ว +1

      Totally different securities however their prices are correlated because REITs are viewed as bond alternatives. E.g. They'll both drop in value if interest rates go up

  • @GarmanH
    @GarmanH 3 ปีที่แล้ว +47

    For as long as I can remember I’ve never settled with random brokerages I invest more effectively with the help of my fund manager Ronald B. Furey. Profits have been consistent and with his skills I don’t bother with the complexities of the market, I just invest and take profits

    • @Axelk8
      @Axelk8 3 ปีที่แล้ว

      Does Mr. ronald teach you directly? how does one reach him for inquiries

    • @GarmanH
      @GarmanH 3 ปีที่แล้ว

      @@Axelk8 No he doesn’t, he provides an investment management service where he trades on my behalf among other investors among his clientele list using his superior expertise. I take the extra effort to monitor the trades and learn a few professional tactics, normally I just provide substantial capital and stand by for withdrawals. This way it creates room for a more efficient and profitable trading process

    • @GarmanH
      @GarmanH 3 ปีที่แล้ว

      @@Axelk8 You can reach out to him on what s-
      app

    • @GarmanH
      @GarmanH 3 ปีที่แล้ว +4

      + 1 3 8 5 4 3 7 1 1 5 8

    • @Axelk8
      @Axelk8 3 ปีที่แล้ว

      @@GarmanH Sounds interesting but how do you handle the risk of him failing to deliver or simply stealing from you? please forgive the awkward questioning

  • @Tekz12
    @Tekz12 4 ปีที่แล้ว +2

    Thanks for sharing this video, I found it super informative and as well easy to follow.

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว

      Glad it was helpful!

  • @CaseyBurnsInvesting
    @CaseyBurnsInvesting 4 ปีที่แล้ว +4

    Investing in REITs in my tax advantaged accounts. Kind of scary these days. Might look into retirement communities, I don’t think the virus will do what people are thinking it will in those communities. Might look into the Royal Bank of Canada. Thanks!

    • @CaseyBurnsInvesting
      @CaseyBurnsInvesting 4 ปีที่แล้ว

      (Relentlessly) 😉

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +1

      Nice man! RBC will be a solid dividend payer through this quarantine I believe :)

  • @hobocyclist
    @hobocyclist 3 ปีที่แล้ว

    how likely will it be to drop 20%?? asked in April 2020...

  • @rk6380
    @rk6380 4 ปีที่แล้ว +8

    Really good informative breakdown of REITS just when I needed it. Many thanks

  • @shockout1
    @shockout1 4 ปีที่แล้ว +2

    Good video. Informative as always. I have BTB.UN and VRE. Considering others at some point (individual stocks, not ETFs).

    • @NickPeitsch
      @NickPeitsch  4 ปีที่แล้ว +1

      Seems to have very low volatility! Would be a nice buy right now

    • @shockout1
      @shockout1 4 ปีที่แล้ว

      @@NickPeitsch good to know I made ok decisions. Kinda learning as I go.

  • @jdl9623
    @jdl9623 3 ปีที่แล้ว +132

    OMG, I thought you were doing this video inside a hospital...lol

    • @satishbhardwaj374
      @satishbhardwaj374 3 ปีที่แล้ว +2

      Same

    • @CBQReview
      @CBQReview 3 ปีที่แล้ว +2

      LMAOOOOOOO

    • @TheRajmoney
      @TheRajmoney 3 ปีที่แล้ว +2

      Same, its the shirt and hair style

    • @triquepersonalwork6369
      @triquepersonalwork6369 3 ปีที่แล้ว +1

      I thought the same thing lol

    • @jdl9623
      @jdl9623 3 ปีที่แล้ว +2

      @@TheRajmoney Haha....the adult version of St. Jude you mean