Tag Archives: diversification

How to invest in Real Estate – The aristocratic (and clean) way!

Here are some notes I typed to a friend in a chat window, I thought they were worthy so I will post here, mainly to remind myself to keep this in my plan, this is in line with my view that the real estate markets, especially in the USA, will be gaining for the next 3-5 years, as they create a new form of the bubble again, also of note that real estate inventory is getting absorbed at a furious pace ( http://www.zerohedge.com/contributed/2013-01-25/california-housing-inventory-disappears-sunset ) and with one of my favorite pieces of advise (from The Book) that if you do not know how to do business in a certain market, hire a professional to either guide you or do it for you:

I want to invest in these guys, let them do my real estate business for me: http://www.topyields.nl/the-25-highest-yielding-reits.php
and these: http://www.dividendchannel.com/slideshows/ten-high-yield-reits/
some of them overlap
I say make a goal to have $1K or $2K in each of them and that constitues my diversified real estate investment, phase 1.
Let them do all the building, paperwork, scrambling for inventory, collecting mortgates and rents, I just realize stock prices and collect dividends…real estate, at its best!

Best regards for a healthy and prosperous 2013!

Background – I think it fair to put the background of my direction to a) Invest in Real Estate and b) What led up to the above. So here it is:

I believe Real Estate should be a substantial part of any healthy portfolio, for various reasons, however, this article really spells out why I began to think this way (having learned from the original text originally): http://www.joshuakennon.com/the-talmud-asset-allocation-model-portfolio/ this is a quick read and very clear as to why.

Before I started researching REITs for diversification and profit I did this:

a) Purchased a few positions of VNQ

b) Purchased a position of each of the following: CIM GOV

c) And along the way I purchased a position in this which I consider to be related: ITB

After seeing that these are doing very well and also seeing that my goal for this sector is large, I wanted to a) diversify to minimize risk and b) seek out maximum profits. So that is why I ended up with the above post. Best regards!