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re: REIT's

Posted on 7/29/16 at 9:55 am to
Posted by whodatigahbait
Uptown
Member since Oct 2007
1752 posts
Posted on 7/29/16 at 9:55 am to
quote:

Why?

Both of mine have done fine over the past two years. Almost all of my other stuff is traded. My CFP picked those two REITs, which was the only reason I bought them. I'm sure he made good commissions on them, but I'm fine with that as long as it doesn't cost me anything and as long as it makes good income and the value doesn't drop.



Have they had a liquidity event? How do you know they've done well if they are still non-traded? Just because the price doesn't change on your statement doesn't mean it's performing well.

Additionally, yes your CFP made around 7% commission and there's another 5% in offering costs so at the end of the day for every dollar you put in only 88 cents was invested. This is a steep hurdle to climb to net a positive return.
Posted by WiscyTiger
Bear Lake, WI
Member since Nov 2008
1415 posts
Posted on 7/30/16 at 12:33 am to
Good points

I don't know, other than what I see on the statements and what the CFP says. I don't really expect to make any money on the value of the shares going up like a regular stock or ETF, I see them as dividend payers only. They make 6-7% and pay out quarterly, and I've made money on the values overall (plus the dividends), so I am happy with them.

That said I have most of my stuff on TD Ameritrade, that I trade myself and do keep up with. REITs and other dividend payers are good for me as a way of balancing things out.
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