Real Estate Investment Trusts (REITs) are companies that are usually publicly traded and that own, operate, or finance income-producing properties. As interest and mortgage rates remain high and housing inventory remains low, it can be difficult for Americans to invest in their own property. That’s where REITs come in.
Manwaring Neighborhood Ventures CEO Jamison Manwaring joins Wealth! to share top tips for playing the REIT space in today’s landscape.
Manwaring points out a “big distinction” for potential REIT investors: “One of the important things with REITs is there are many that are publicly traded. And then there are many that are not publicly traded. And the ones that are not publicly traded like the one we do at Neighborhood Ventures doesn’t have a correlation with the market. And typically a publicly traded REIT, even if the underlying assets are performing well it may go down along with the rest of the stock market because it’s publicly traded.”
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Nicholas Jacobino
Video Transcript
Home ownership is becoming less attainable.
Thanks to rising mortgage rates and low, I be recovering inventory.
57% of renters agree that the American dream of owning a home is dead.
That is according to a Harris poll.
If you want to invest in the housing market without buying a home, though there is an alternative real estate investment trusts or we could be your way in our public, be traded companies that own operate or finance income producing properties and you can invest in reads the same way you might invest in specific companies for more on playing the read space.
We are joined by Jamison man wearing neighbor a ventures, Ceo James and thanks so much, much for being here with us.
Start us off with what exactly investors need to know about what a read is before they start investing.
Yeah, re gives you the opportunity to invest in a pool of assets and you can invest in multifamily res, you can invest in office res you can invest in a mix.
Um It depends on what your appetite is.
And one of the important things with, with reeds is there are many that are publicly traded.
And then there are many that are not publicly traded and the ones that are not publicly traded, like the one we do at neighborhood ventures has doesn’t have a correlation with the market.
And typically a publicly traded re even if the, the underlying assets are performing well, it may go down along with the rest of the stock market uh because it’s publicly traded.
So there’s two big distinct, there’s a big distinction there, but it gives you the opportunity to invest in housing.
For example, even if you’re a renter, now, you can still be exposed to the housing market, start to build that equity.
And we have a lot of younger investors who are renters, but they’re investing in re to uh to start building their equity uh in, in housing.
So talk to me about how those younger investors are finding the ability to invest in private res like your own given that it’s not on the public market.
It’s a little bit and can seem a little bit less accessible to investors.
You know, things have really changed with social media and online content.
People find us every day but they, they have to do a little bit of research.
It’s not that that difficult.
Now though, if you put in, you know, reads online, you’ll find us and you’ll find our content and other companies like us, we do a lot of, of education.
So investors know what they’re investing in and then we have uh investors can begin investing with as little as $100 a month and they can put that on an automatic investment on the 15th of every month, they can begin investing a little bit.
And then we have investors that invest, you know, several $100,000 as well.
So it’s a, it’s a great way for all types of investors to invest, but things have definitely changed.
You don’t, younger folks are not looking and I’m talking kind of the more millennials and down, they want to do the research themselves, they want to have control over what they invest in.
They’re not looking for a financial advisor to control what they invest in any longer.
And companies like ours are really benefiting from that.
Well, it’s, it’s interesting, a lot of investors may not even know that they’re already allocated to reeds, particularly through their 401k is almost 100% of them have reallocation.
But when you look at the shareholders by type, a little over half are through mutual funds or ETF S, what should investors know about going the ETF mutual fund route to get that asset allocation versus investing in individual names in the re space.
What is that risk reward ratio looking like most investors who have invested in reeds?
A lot would prefer to have more visibility into what that reed is investing in.
And a large, a lot of these very large reeds, they don’t give a lot of detail about what specific buildings are in there.
So it’s kind of like investing in a, just a big ETF there are the alternative if you were to compare it to like a single stock or more of a basket of, of uh stocks is when you do invest in a privately traded re so ours, for example, we’re only investing in multifamily typically in the Southwest and we know that’s where the migration of people is moving in the US.
We know that’s where the growth is happening.
So you can get some really nice specific exposure, still get the diversification in a, in a non publicly traded reits and there are many out there like ours.
All right, Jamison, we’re gonna have to leave it there.
Thank you so much for joining us.
That was Jamison Manwaring neighborhood ventures ceo joining us on all things res.
