REITs Vs. Private Equity Real Estate: What's The Best Way To Invest?

Nov. 20, 2021 9:00 AM ET, , , , , , 19 Comments

Summary

  • A lot of investors favor private real estate over REITs because they think that it is more rewarding.
  • But in reality, it is the opposite. It may not be as sexy to invest in REITs, but it has historically resulted in superior returns with less risk.
  • We dive into the various studies that compare REITs to private real estate and highlight the main takeaways. In the end, we also present one of our current top picks.
  • Looking for a portfolio of ideas like this one? Members of High Yield Landlord get exclusive access to our model portfolio. Learn More »

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Investors are constantly faced with the choice of how to allocate scarce investment capital. Most of those fortunate enough to have a meaningful amount of funds to invest know

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This article was written by

67.45K Followers

Jussi Askola is the President of Leonberg Capital, a value-oriented investment boutique that consults hedge funds, family offices, and private equity firms on REIT investing. He has authored award-winning academic papers on REIT investing, has passed all three CFA exams, and has built relationships with many top REIT executives.

He is the leader of the investing group High Yield Landlord, where he shares his real-money REIT portfolio and transactions in real-time. Features of the group include: three portfolios (core, retirement, international), buy/sell alerts, and a chat room with direct access to Jussi and his team of analysts to ask questions. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of IRT; NNN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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SymbolLast Price% Chg
IRT--
Independence Realty Trust, Inc.
NNN--
NNN REIT, Inc.
SCHH--
Schwab U.S. REIT ETF™
VGSIX--
Vanguard Real Estate Index Fund Investor Shares
VGSLX--
Vanguard Real Estate Index Fund Admiral Shares

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