Introduction
Real estate investment trusts (REITs) can be a valuable addition to any investment portfolio, but understanding how to invest in them can be challenging. “The Intelligent REIT Investor Guide: How to Sleep Well at Night with Safe and Reliable Dividend Income” by Brad Thomas, provides readers a comprehensive guide to REIT investing. In this review, I will share my thoughts on the book and explain why I believe it is a must-read for anyone interested in investing in REITs.
Understanding REITs
The Intelligent REIT Investor Guide begins by providing a detailed explanation of what REITs are and how they work. Brad Thomas explains that REITs are companies that own and operate income-producing real estate, and that they are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends.
Thomas explains the different types of REITs, including:
- Equity REITs
- Mortgage REITs
- Hybrid REITs
He provides examples of companies in each category and explains the risks and rewards of investing in each type of REIT. This is my favorite section of the book as it gives the reader actionable ideas to conduct further research to find the right REITs for their portfolio.
The book provides details on each REIT sector as well, including:
- Residential
- Retail
- Office
- Healthcare
- Self-storage
- Lodging
- Technology
- Specialized
Thomas also provides historical return figures for REITs and compares them to other investment options including bonds, preferred stocks, and Master Limited Partnerships (MLPs).
Building a REIT Portfolio
The book also provides practical advice on how to build a REIT portfolio, including:
- How to evaluate a REIT’s financial health
- How to analyze its management team
- How to assess its growth potential
- How to diversify a REIT portfolio across different sectors and geographies to minimize risk and maximize returns
The book is written in a clear and accessible manner, making it easy for readers to understand the concepts and principles of REIT investing. The book provides numerous examples of REITs that meet the criteria for a well-diversified and successful REIT portfolio, making it easy for readers to apply the principles to their own investment portfolios.
Conclusion
The Intelligent REIT Investor Guide is a valuable resource for anyone interested in investing in REITs, whether a beginner or a seasoned investor. The book provides a comprehensive overview of the principles and strategies of investing in REITs, as well as practical advice on how to build and manage a REIT portfolio. By emphasizing the importance of evaluating a REIT’s financial health and growth potential, the book provides a sensible and effective approach to building long-term wealth through real estate investing. I have come back and referenced this book many times since purchase as I evaluate new investment ideas. I have listed my favorite REITs here. This book is a staple for any investor’s toolkit. If you are looking for a comprehensive guide to investing in REITs, I highly recommend this book.