REITs For Dummies

Get the 411 on real estate investment trusts (REITs) and how they might fit into your portfolio

Are you looking for exciting—but responsible—new investment opportunities that go beyond simple stocks and bonds?

In REITs For Dummies, celebrated investing lecturer and author Brad Thomas delivers an easy-to-understand guide to getting started with real estate investment trusts—also known as “REITs.” These flexible and lucrative investment tools package together individual properties so you can invest in land and buildings without the hassle of being a landlord.

In the book, you’ll get a straightforward tour of REIT property sectors and the different ways you can invest in REITs. You’ll also find:

• Strategies for selecting the best REITs for you and your family
• Ways to navigate the sector and generate durable income that helps you sleep well at night
• Options for those who want to go beyond the United States and investigate international REIT products.

You already know about the basics of stock and bond investing. Now it’s time to learn about some of the other interesting financial products available to the responsible investor. In REITs For Dummies, you’ll get the jargon-free and easy-to-follow guidance you need to wrap your head around this exciting opportunity.

Introduction 1

Part 1: Getting Started with REITs 5

Chapter 1: Who Wants to Be a Virtual Landlord? 7

Chapter 2: It All Starts with Real Estate 15

Chapter 3: Unlocking the First Level of the REIT Universe 31

Chapter 4: Understanding How REITs Make Money 45

Chapter 5: REITs around the Globe 61

Part 2: Exploring the REIT Universe 83

Chapter 6: Exploring the Primary REIT Sectors 85

Chapter 7: Exploring Alternative REIT Sectors 105

Chapter 8: Putting on Your REIT Analyst Hat 125

Chapter 9: Separating the Wheat from the Chaff 149

Part 3: REITs for All Investors 161

Chapter 10: Building a Smart REIT Portfolio from the Ground Up 163

Chapter 11: The Big Fish REIT Investors 179

Chapter 12: Pressing the REIT Easy Button 195

Part 4: The Part of Tens 211

Chapter 13: More Than Ten FAQs About REITs 213

Chapter 14: Ten Mistakes to Avoid When Investing in REITs 223

Appendix A: Assessing Weighted Average Cost of Capital 233

Appendix B: Determining Net Asset Value 237

Appendix C: Calculating Adjusted Funds from Operations 241

Glossary 243

Index 261

Brad Thomas has over 30 years of real estate investing experience. He’s published over 4,000 articles during the last 13 years, and he is the top writer on Seeking Alpha, the world’s largest investing community. He is also the CEO of Wide Moat Research, senior analyst at iREIT®, and a REIT ETF provider (iREIT^® MarketVector^™ Quality REIT Index). Brad teaches REITs at New York University and other schools such as Penn State University, Clemson University, the University of North Carolina, Cornell University, and Georgetown University.

Find out if REIT investing is a fit for you

It’s always a good time to invest in real estate investment trusts (REITs) thanks to the high-yield dividends they’re known to pay out no matter the economic conditions. REITs For Dummies gives you the 411 on this asset class so that you have the background knowledge you need to work REITs into your portfolio. Take a tour of REIT property sectors, including residential, data centers, retail, and self-storage. Learn how to analyze REIT performance, choose the right mix for your investment goals, and branch out to global REITs, ETFs, and beyond. With this jargon-free Dummies guide, anyone can get started investing in REITs.

Inside…

• Understanding how REITs work
• Following real estate trends
• Considering REIT types
• Building a REIT portfolio
• Comparing REITs to stocks and alternative investment vehicles
• Using REITs in retirement accounts
• Avoiding common mistakes