I have a little bit of money (~$40k) that's currently sitting in a checking account, and with inflation being what it is, I'm thinking about putting that into a few REITs.
The reason for REITs is that real estate is what I know (I own a few multi-unit residential properties) which makes it easier for me to understand how they make their money, the risks they face, and how they're likely to behave in the coming downturn.
I'm specifically staying away from more speculative ones - i.e., no retail space owners, no businesses that just hold mortgages, etc. Just companies that actually own property and collect rent. Simple, easy to follow.
The REITs I'm thinking about are:
- UMH - residential real estate
- DEA - own office space and lease it to the US government
- CCI - own cell towers and lease to Verizon, Dish, etc.
- SLG - Manhattan office space, took a BIG hit in March 2020, been climbing back up since
Thoughts? Is this a good idea? Again, I'm mainly looking for an inflation hedge with a decent dividend paid from FFO (3-5%). Perhaps there are better ones to invest in?
Longer term, I'm planning to keep adding around $4k a month, perhaps a little more.
Submitted October 27, 2021 at 09:38AM by galendiettinger https://ift.tt/2ZwzW8k
