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Before you get too far down this road, remember that the REIT's slice of the ownership is second or even third to a lender, and said lender may be just about to
by ethagknight 3y ago
Before you get too far down this road, remember that the REIT's slice of the ownership is second or even third to a lender, and said lender may be just about to take that property back from the equity holders, wiping out your investment.
- evanelias 3y agoAs an alternative to a REIT, any thoughts on TIAA's Real Estate Account [1]? It seemed like a popular retirement investment choice when I worked in higher education. (IIRC it's only available in retirement accounts and only for employees of nonprofits, education sector, etc.) If I understand correctly, they mostly invest directly in commercial real estate, and they keep their LTV ratio quite low (20%). I'm curious about how it might perform during a plummeting market for office space... perhaps it'll drop but not as badly as REITs? [1] https://www.tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/tiaa-real-estate-account https://www.tiaa.org/public/retire/financial-products/annuit...