Owning a piece of Real Estate without a huge capital investment. Why REIT’s offer investors income, real estate ownership and high dividend yields?

For most “do it yourself” investors like myself, trying to find the best investment option that would maximize growth, stability and income was a decision I grabbled with for a few months.  Which sector offered the best value for my money? Should I go tech? Should I go consumer staples? Should I go oil & gas?  I was all over the place.  Sort of a limitless list of options.  However, one thing was for sure I wanted to fund my Fidelity account and I wanted to do it, today! So let the research begin.

My journey lead me to the world of Real Estate Investment Trusts or REITs.  What is a REIT? A REIT is a real estate investment trust company which owns or finances income producing real estate.  They can own anything from apartment buildings to offices, malls, hotels or warehouses.  It can be a mixed bag of real estate holdings, but the great thing about these companies they are required to shell out 90% of their taxable income.  This translates into income, income and more income because of average returns over the past 15 years of 11.2%, annual returns which doubled the 5.5% annualized gains from Standard & Poor’s stock index covering the same time period.  With this information at my disposal I decided to see where can I find the most value for my investment dollars.

After considerable research, I decided to make an initial investment with a small position for less than a $100 into Whitestone REIT (WSR -stock symbol). Whitestone REIT was founded in 1998 and is headquartered in Houston, Texas.  They own, operate and redevelop Community Centered Properties located in multiple states Arizona, Illinois and Texas.  The majority of their real estate holdings are throughout the following Texas cities Austin, Dallas, Houston and San Antonio.  Presently, their shares are trading around $13.54 per share with a dividend yield of 8.19%, with a monthly distribution of dividend earnings.  The monthly distribution of dividend income is an attractive characteristic of REIT stocks.  I own and recommend this stock to “do it yourself” investors looking to invest in prime real estate without large capital investment commonly required by real estate investors.  Whitestone REIT gives investors this opportunity.  So let’s get started and let’s invest2day!!

 

 

 

 

 


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