real estate

This month’s recommendation looks at a real estate investment trust, or REIT, that has a very low level of risk, and that is supported by a huge dividend that is well above almost any fixed-income instrument in the market today.

The heads are finally starting to roll in commercial real estate. And another $200 billion of office mortgages remain outstanding and will need to be refinanced before the end of 2026. This could turn out much worse than the subprime-lending fiasco from 2007.

The U.S. housing market faces the prospect of a decade-long supply crunch. Today, we’ll introduce our next play on America's housing shortage, and one of the most capital efficient business models we've come across.

Patrick didn’t set out to revolutionize an industry. He just wanted to build houses. During the roaring housing mania of 2005, the business he was building was a tiny fish swimming in a giant pond. He was trying to find empty lots to build new homes on. But land was scarce, and expensive. His competitors were multi-billion-dollar corporations, and they were scooping up property like marbles on the sidewalk.

The REIT we’ll introduce today offers an extra degree of safety. It avoids physical real estate properties entirely, and instead invests primarily in mortgage securities that are effectively backed by the government. And they’re a better buy than government bonds.