Investing in REITs: Real Estate Investment Trusts, 4th Edition

Summary

• Before we make any decision on precisely what to invest in, we should determine why we're investing—and define our investment goals and risk tolerances.
• The aggressive investor seeking very large returns over short time periods should not put a high percentage of assets into REITs; they are a singles-hitter's game.
• Allocations to REIT investments will be different for each investor, depending on his or her age, financial goals, risk tolerance, and desire for current income, but I believe that a 15 to 20 percent allocation to REITs is appropriate for most investors.
• An absolute minimum of six or eight REITs is necessary to achieve a basic level of diversification when investing in individual REIT stocks.
• Unless an investor is very confident ...