By Brad Thomas via Iris.xyz
Yes, good things come in small packages – REIT investing is no exception – so here are 5 “Small-Cap” Real Estate Investment Trusts worth considering for your portfolio.
But first, a (small) handful of reasons that I like Small-Cap REITs:
1. With Small-Caps, I can fish for bargains, and try to identify soon-to-be “big players” in an otherwise small-cap pond. It’s worth going where many analysts, “the Street,” and other investors often fail to look. I like looking for trends and finding them: the small-fry company on an upswing, the underdog racing past in victory, the seemingly newly-hatched “overnight” sensation whose business plan has been underway for a decade.
2. As a long-time REIT aficionado and analyst, I’m quite comfortable researching REITs for hours – and then collecting my dividends, especially as they grow over time, all while I simply hold the shares.
3. There are important guidelines and rules for successful Small-Cap REIT investing. With less volume of shares traded for a given ticker symbol, the price spread will typically be wider. Placing limit orders instead of market orders can help prevent your final price from getting attached to the higher (“ask”) side of the spread.
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