Started By
Message

Inverse Real Estate Investment Trust (REIT)

Posted on 5/14/21 at 8:27 am
Posted by LSUStjames
Member since Dec 2005
3473 posts
Posted on 5/14/21 at 8:27 am
I'm starting to look at getting some exposure to the Real Estate Bubble. Some homes in the Bay area in SF are going for $1 Million OVER asking price. Also with Lumber shortages and build prices going through the roof along with the Fed potentially having to raise rates in the future, I see this bubble bursting.

DRV is the 3x Leveraged Inverse REIT so thinking of going with that one.

Thoughts?
This post was edited on 5/14/21 at 8:28 am
Posted by Powerman
Member since Jan 2004
162264 posts
Posted on 5/14/21 at 8:31 am to
I'm not a fan of leveraged ETFs because the leverage is applied on a daily basis. And you might be early with your timing.
Posted by JimMorrison
The Peninsula
Member since May 2012
20747 posts
Posted on 5/14/21 at 8:51 am to
If rates rise, isn't real estate investment one of the safest plays? What exactly is DRV shorting? Housing prices or commercial REITs?

And echoing what Powerman said. Inversed ETFs are made to go to 0. If you're early, you're going to get smoked. They aren't for long term holding.
Posted by go ta hell ole miss
Member since Jan 2007
13664 posts
Posted on 5/14/21 at 9:09 am to
Inverse leveraged funds are unfortunately a lesson that is often only learned from experience. My experience is if you hold for any length of time beyond a day or two you are setting yourself up for failure. I won’t try to talk you out of it and I hope you have success.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37174 posts
Posted on 5/14/21 at 9:49 am to
quote:

Thoughts?


Seems like gambling.

Some people win. Some people lose. The people running the fund will make money no matter what.
Posted by KillTheGophers
Member since Jan 2016
6235 posts
Posted on 5/14/21 at 11:00 pm to
Not thoughts - real life for me - I got in too early on one of these and lost my arse.

If you do this, treat it as a gamble and be willing to walk away with zero.
Posted by hiltacular
NYC
Member since Jan 2011
19691 posts
Posted on 5/14/21 at 11:15 pm to
REK SRS and DRV are the 3. I'd rather short a company and not the overall market when it comes to RE
Posted by I Love Bama
Alabama
Member since Nov 2007
37740 posts
Posted on 5/15/21 at 10:37 am to
You are probably right, but you can be right on the thought and wrong on the timing and be absolutely crushed.

It is 100% an educated gamble.
Posted by down time
space
Member since Oct 2013
1914 posts
Posted on 5/16/21 at 12:21 pm to
Seems like the bubble has a long way to go
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26586 posts
Posted on 5/16/21 at 1:29 pm to
You should buy puts or sell call spreads, imo. On an individual name is best. Options are a much more efficient way of doing this than the inverse ETFs.
Posted by macatak911
Metairie, LA
Member since Sep 2007
11073 posts
Posted on 5/16/21 at 2:00 pm to
(no message)
This post was edited on 5/16/21 at 2:01 pm
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram