5 REIT Reasons to Buy These 5 Blue-Chip REITs

By Brad Thomas via Iris.xyz

Let’s start it up…

ONE Risk tolerance is an important component in your investing process – being realistic about your ability and readiness to stomach big swings in the value of your investments. It’s actually simple: Assess the returns you expect, and the time horizon you have to invest. Then, protect your principal at ALL costs. Best way? Research every single pick, top to bottom. Focus first on fundamentals, then management, then big picture, then valuation.

TWO Investments don’t pay 8% and higher in this environment unless there’s risk. I don’t care how smart the investor – it’s critical when you’re more aggressive … to double-down on knowledge about the prospective company. Look into financial statements and question if the dividend can be maintained – and look at management’s track record paying dividends.

THREE As loyal followers and subscribers know, I’m a conservative investor, and have experienced my share of losses. I’ve bet big on leverage and higher-yielding investments, but those instant gratification days exist only in my rear-view mirror. Let high rollers play the dangerous tables. I shall sit back with my balanced approach and intermediate-term time horizons of five to 10 years.

FOUR Valuations are meaningless without a strategy. Determine the intent of your investments, and choose wisely (even when it’s not your money). No strategy – sorry, no valuation. Pick and choose the best categories, the best property sectors, the best REITs of the bunch. (Consider from over 140 choices using the Lab section of my Forbes Real Estate Investor.)

Click here to read the full story on Iris.xyz.