Real Estate Investment Trusts are designed to give investors an opportunity to invest in real estate, which over the long-term has performed pretty well as an asset class, the last year notwithstanding. Last week (2/2 - 2/6) even saw a pretty nice move in the REIT market, below the returns of the Nasdaq (QQQQ) and S&P 500 (SPY), but slightly above the DJIA (DIA).

Source: Wall Street Journal

Of course, the days of easy credit, structured real estate products freeing up capital, and rampant building may be over, most likely taking with them above average returns. Nonetheless, there may still be some opportunities in REITs as the housing mess unfolds and sorts itself out, and the Treasury department finally starts addressing the housing issue (see WSJ article regarding a proposed loan modification program - details later). Note: Citigroup (C) and JP Morgan (JPM) have agreed to a foreclosure moratorium for 90 days (see WSJ article), in anticipation that additional details of the Treasury plan will be available within the next three months.

Investing in the booming real estate market…?

Lest you think I’ve gone totally off my rocker, let me explain. Last night, I received an interesting phone call from an old friend of mine. Jim’s in his forties, has a wife and a couple of kids, and lives in Orlando, Florida.