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BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
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GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
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XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)

Real Estate Stocks List

This page shows information about the 39 largest real estate stocks including Life Storage, Howard Hughes, Necessity Retail REIT, and Arlington Asset Investment. Learn more about real estate stocks.

Life Storage logo

#1 - Life Storage

NYSE:LSI
Stock Price: $133.10 (-$1.02)
Market Cap: $11.33 billion
P/E Ratio: 30.9
Dividend Yield: 2.61%
Consensus Rating: Moderate Buy (2 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $141.50 (6.3% Upside)
Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Located in Buffalo, New York, the Company operates more than 1,200 storage facilities in 37 states and the District of Columbia. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to more than 690,000 customers, making it a leader in the industry.
Howard Hughes logo

#2 - Howard Hughes

NYSE:HHC
Stock Price: $77.52 (+$0.08)
Market Cap: $3.88 billion
P/E Ratio: 32.2
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $95.00 (22.5% Upside)
The Howard Hughes Corporation owns, manages, and develops commercial, residential, and mixed-use properties in the United States. It operates through four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment owns retail, office, multi-family, hospitality, and other operating properties and investments primarily located in Houston, Texas; Columbia, Maryland; Las Vegas, Nevada; and Honolulu, Hawaii. The MPCs segment develops and sells detached and attached single family homes that range from entry-level to luxury homes to residential homebuilders and developers; and sells or leases land for commercial development, including land parcels designated for retail, office, hospitality, and residential projects. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships. The Strategic Development segment develops residential condominium and commercial property projects. This segment consists of development or redevelopment projects. The Howard Hughes Corporation was incorporated in 2010 and is headquartered in Dallas, Texas.
Necessity Retail REIT logo

#3 - Necessity Retail REIT

NASDAQ:RTL
Stock Price: $7.61
Market Cap: $1.02 billion
Dividend Yield: 11.17%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $8.00 (5.1% Upside)
The Necessity Retail REIT (Nasdaq: RTL) is the preeminent publicly traded real estate investment trust (REIT) focused on "Where America Shops". RTL acquires and manages a diversified portfolio of primarily necessity-based retail single-tenant and open-air shopping center properties in the U.S.
Arlington Asset Investment logo

#4 - Arlington Asset Investment

NYSE:AAIC
Stock Price: $4.84
Market Cap: $141.72 million
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Arlington Asset Investment Corp. (NYSE: AAIC) currently invests primarily in mortgage related and residential real estate and has elected to be taxed as a REIT. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.
Western Asset Mortgage Capital logo

#5 - Western Asset Mortgage Capital

NYSE:WMC
Stock Price: $9.18
Market Cap: $55.54 million
Dividend Yield: 4.55%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Western Asset Mortgage Capital Corporation operates as a real estate investment trust. It invests in, acquires, and manages a portfolio of assets with a focus on residential real estate related investments, including non-qualified mortgage loans, non-agency residential mortgage-backed securities (RMBS), and other related investments. The company qualifies as a real estate investment trust for federal income tax purposes. Western Asset Mortgage Capital Corporation was incorporated in 2009 and is based in Pasadena, California.
Harbor Custom Development logo

#6 - Harbor Custom Development

NASDAQ:HCDI
Stock Price: $0.06 (-$0.03)
Market Cap: $132,000.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Harbor Custom Development, Inc. operates as a real estate development company in Washington, California, Texas, and Florida. The company is involved in land development cycle, which includes land acquisition, entitlement, development, and construction of project infrastructure; single and multi-family vertical construction; and marketing and sale of various residential projects. It also undertakes projects, such as residential lots, home communities, townhomes, and multi-story apartment properties. The company was formerly known as Harbor Custom Homes, Inc. and changed its name to Harbor Custom Development, Inc. in August 2019. Harbor Custom Development, Inc. was incorporated in 2014 and is headquartered in Tacoma, Washington. On December 11, 2023, Harbor Custom Development, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Western District of Washington.
Presidio Property Trust logo

#7 - Presidio Property Trust

NASDAQ:SQFTW
Stock Price: $0.06
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio's model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. Presidio owns approximately 6.5% of the outstanding common stock of Conduit Pharmaceuticals Inc., a disease agnostic multi-asset clinical-stage disease-agnostic life science company providing an efficient model for compound development.
Sotherly Hotels logo

#8 - Sotherly Hotels

NASDAQ:SOHOO
Stock Price: $19.47 (+$0.26)
Dividend Yield: 7.76%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.
Safe and Green Development logo

#9 - Safe and Green Development

NASDAQ:SGDVV
Stock Price: $2.74 (+$0.33)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Safe and Green Development Corporation operates as a real estate development company. It focuses on building single or multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.
Appreciate logo

#10 - Appreciate

NASDAQ:SFRWW
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Appreciate Holdings, Inc., a single-family rental (SFR) services company, operates an end-to-end technology platform serving individual and institutional investors in the United States. The company operates through two segments, Management and Marketplace. The Management segment provides services related to the leasing and managing of SFR properties. The Marketplace segment offers real property sourcing and acquisition services, as well as renovation services, including construction management services. The company was founded in 2007 and is headquartered in Minnetonka, Minnesota.

#11 - SABRA HLTHCRE REIT 7.125% SRS A PRF

NASDAQ:SBRAP
Stock Price: $25.40
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
As of December 31, 2017, Sabra's investment portfolio included 507 real estate properties held for investment (consisting of (i) 384 Skilled Nursing/Transitional Care facilities, (ii) 88 Senior Housing - Leased communities, (iii) 13 Senior Housing - Managed communities and (iv) 22 Acute Care Hospitals), one investment in a direct financing lease, 22 investments in loans receivable (consisting of (i) two mortgage loans, (ii) two construction loans, (iii) two mezzanine loans, (iv) one pre-development loan and (v) 15 other loans), 12 preferred equity investments and one investment in a specialty valuation firm. As of December 31, 2017, Sabra's real estate properties held for investment included 53,558 beds/units, spread across the United States and Canada.

#12 - Regency Centers

NASDAQ:REGCP
Stock Price: $24.70
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.

#13 - Pennsylvana Reit Cum Rdmbl Srs D Prf

NYSE:PEI.PD
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures.

#14 - PA Rl Est Invt/RED PFD sh S C

NYSE:PEI.PC
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures.
New York Mortgage Trust logo

#15 - New York Mortgage Trust

NASDAQ:NYMTZ
Stock Price: $17.80 (+$0.18)
Dividend Yield: 10.22%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; and other mortgage, residential housing, and credit-related assets. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2003 and is headquartered in New York, New York.

#16 - Annaly Capital Management

NYSE:NLY-PG
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. Annaly Capital Management, Inc. also provides financing to private equity-backed middle market businesses; and operates as a broker-dealer. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York.

#17 - Annaly Capital Management, Inc. Preferred Shares Series G

NYSE:NLY.PG
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments. It also provides financing to private equity-backed middle market businesses; and operates as a broker-dealer. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York.

#18 - MFA FINANCIA 7.50% SRS B CUM RED PRF

NYSE:MFA.PB
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
MFA Financial, Inc., through its subsidiaries, operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage assets, including non-agency mortgage-backed securities (MBS), agency MBS, and credit risk transfer securities; residential whole loans, including purchased performing loans, purchased credit impaired, and non-performing loans; and mortgage servicing rights related assets. The company has elected to be taxed as a REIT and would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. MFA Financial, Inc. was incorporated in 1997 and is headquartered in New York, New York.

#19 - Medalist Diversified REIT

NASDAQ:MDRRP
Stock Price: $24.72 (+$0.01)
Dividend Yield: 16.77%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.
Landsea Homes logo

#20 - Landsea Homes

NASDAQ:LSEAW
Stock Price: $0.28
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Landsea Homes Corporation (Nasdaq: LSEA) is a publicly traded residential homebuilder based in Dallas, Texas that designs and builds best-in-class homes and sustainable master-planned communities in some of the nation's most desirable markets. The company has developed homes and communities in New York, Boston, New Jersey, Arizona, Colorado, Florida, Texas and throughout California in Silicon Valley, Los Angeles, and Orange County. Landsea Homes was named the 2022 winner of the prestigious Builder of the Year award, presented by BUILDER magazine, in recognition of a historical year of transformation. An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities, Landsea Homes is known for creating inspired places that reflect modern living and provides homebuyers the opportunity to Live in Your Element. Our homes allow people to live where they want to live, how they want to live in a home created especially for them. Driven by a pioneering commitment to sustainability, Landsea Homes' High Performance Homes are responsibly designed to take advantage of the latest innovations with home automation technology supported by Apple. Homes include features that make life easier and provide energy savings that allow for more comfortable living at a lower cost through sustainability features that contribute to healthier living for both homeowners and the planet. Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise, Landsea Homes is committed to positively enhancing the lives of our homebuyers, employees, and stakeholders by creating an unparalleled lifestyle experience that is unmatched.
Gladstone Land logo

#21 - Gladstone Land

NASDAQ:LANDP
Stock Price: $19.57 (-$0.18)
Dividend Yield: 7.49%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 169 farms, comprised of approximately 116,000 acres in 15 different states and over 45,000 acre-feet of banked water in California, valued at a total of approximately $1.6 billion. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 20-plus years and harvested annually. Approximately 40% of the Company's fresh produce acreage is either organic or in transition to become organic, and over 10% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 129 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 32 times over the prior 35 quarters, and the current per-share distribution on its common stock is $0.0464 per month, or $0.5568 per year.
Healthcare Trust logo

#22 - Healthcare Trust

NASDAQ:HTIBP
Stock Price: $15.51 (+$0.51)
Dividend Yield: 10.06%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Healthcare Trust, Inc. is a publicly registered real estate investment trust focused on acquiring a diversified portfolio of healthcare real estate, with an emphasis on seniors housing and medical office buildings, located in the United States.
Gladstone Commercial logo

#23 - Gladstone Commercial

NASDAQ:GOODN
Stock Price: $21.62 (+$0.18)
Dividend Yield: 6.82%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States.

#24 - Global Net Lease Inc Preferred Shares Series A

NYSE:GNL.PA
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe.
Generation Income Properties logo

#25 - Generation Income Properties

NASDAQ:GIPRW
Stock Price: $0.48 (+$0.02)
Dividend Yield: 11.84%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate investment trust formed to acquire and own, directly and jointly, real estate investments focused on retail, office, and industrial net lease properties in densely populated submarkets.
Empire State Realty OP logo

#26 - Empire State Realty OP

NYSE:ESBA
Stock Price: $10.06 (+$0.89)
Dividend Yield: 2.46%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Empire State Realty OP, L.P. operates as a subsidiary of Empire State Realty Trust, Inc.

#27 - CorEnergy Infrastructure Trust

NYSE:CORR-PA
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA), is a real estate investment trust (REIT) that owns critical energy assets, such as pipelines, storage terminals, and transmission and distribution assets. We receive long-term contracted revenue from customers and operators of our assets, including triple-net participating leases and from long term customer contracts.

#28 - CAPSTAD MORT 7.50% SRS E CUM RED PRF

NYSE:CMO.PE
Stock Price: $0.00
Dividend Yield: 0.08%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States. It invests in a portfolio of residential mortgage pass-through securities primarily consisting of short-duration adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises, or by an agency of the federal government. The company qualifies as a REIT for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1985 and is headquartered in Dallas, Texas.
Creative Media & Community Trust Co. logo

#29 - Creative Media & Community Trust Co.

NASDAQ:CMCTP
Stock Price: $29.05
Dividend Yield: 5.47%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Creative Media & Community Trust Corporation is a real estate investment trust that primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets). Its properties are primarily located in Los Angeles and the San Francisco Bay Area. Creative Media & Community Trust Corporation is operated by affiliates of CIM Group, L.P., a vertically-integrated owner and operator of real assets with multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing, and onsite property management capabilities.

#30 - Colony Capital

NYSE:CLNY-PI
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment firm with a heritage of identifying and capitalizing on key secular trends in real estate. The Company manages an approximately $47 billion portfolio of real assets on behalf of its shareholders and limited partners, including over $23 billion in digital real estate investments through Digital Colony, its digital infrastructure platform. Colony Capital, structured as a REIT, is headquartered in Los Angeles with key offices in Boca Raton, New York, and London, and has over 350 employees across 20 locations in 11 countries.

#31 - COLONY C 7.15 SRS I CUM RED PREP PRF

NYSE:CLNY.PI
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Colony Capital, Inc. (NYSE: CLNY) is a global investment firm focused on building, financing, and owning digital infrastructure assets serving the world's leading technology and telecommunications companies. The Company has assets under management of approximately $50 billion composed of $38 billion of capital managed on behalf of third-party institutional and retail investors and $12 billion of investment interests on its own balance sheet. The Company's owns and operates an investment management business with $20 billion in digital real estate investments and $18 billion in traditional commercial real estate debt and equity investments. With respect to investment interests on its balance sheet, the Company owns (a) a controlling 20% interest in DataBank, a leading provider of enterprise-class data center, cloud, and connectivity services (b) a 71% interest in 357 healthcare properties, (c) a 94% interest in 157 hospitality properties, (d) approximately 48 million shares of Colony Credit Real Estate, Inc. (NYSE: CLNC) and (e) interests in various other equity and debt investments including general partnership interests in funds management by the Company, commercial real estate equity and debt investments and other real estate-related securities. The Company is headquartered in Los Angeles with key offices in Boca Raton, New York, Paris and London, and has over 400 employees across 21 locations in 12 countries.

#32 - CBL & ASSOCIATE/DEPOSITARY SH S E

NYSE:CBL.PE
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL's portfolio is comprised of 108 properties totaling 68.2 million square feet across 26 states, including 68 high-quality enclosed, outlet and open-air retail centers and 9 properties managed for third parties. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties.

#33 - CBL ASSOCIATES DS RPT 1/10 SR D PRF

NYSE:CBL.PD
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL's portfolio is comprised of 108 properties totaling 68.2 million square feet across 26 states, including 68 high-quality enclosed, outlet and open-air retail centers and 9 properties managed for third parties. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties.
Brookfield Property REIT logo

#34 - Brookfield Property REIT

NASDAQ:BPYUP
Stock Price: $25.20
Dividend Yield: 6.41%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Brookfield Property REIT Inc. (ÂBPYUÂ) is a subsidiary of Brookfield Property Partners L.P., (NASDAQ: BPY; TSX: BPY.UN) (ÂBPYÂ) one of the world's premier real estate companies, with approximately $88 billion in total assets. BPYU was created as a public security that is intended to offer economic equivalence to an investment in BPY in the form of a U.S. REIT stock.
Brookfield Property Partners logo

#35 - Brookfield Property Partners

NASDAQ:BPYPP
Stock Price: $13.50 (+$0.05)
Dividend Yield: 7.39%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Brookfield Property Partners, through Brookfield Property Partners L.P. and its subsidiary Brookfield Property REIT Inc., is one of the world's premier real estate companies, with approximately $88 billion in total assets. We own and operate iconic properties in the world's major markets, and our global portfolio includes office, retail, multifamily, logistics, hospitality, triple net lease, manufactured housing and student housing. Brookfield Property Partners is the flagship listed real estate company of Brookfield Asset Management Inc., a leading global alternative asset manager with over $600 billion in assets under management. More information is available at www.brookfield.com.

#36 - Anworth Mortgage Asset Co. Preferred Shares Series C

NYSE:ANH.PC
Stock Price: $0.00
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Anworth Mortgage Asset Corporation operates as a real estate investment trust (REIT) in the United States. It primarily invests in, finances, and manages a leveraged portfolio of residential mortgage-backed securities and loans that are guaranteed by government-sponsored enterprises, such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. The company also invests in non-agency mortgage backed securities that are secured by first-lien residential mortgage loans; and other mortgage-related investments consisting of mortgage derivative securities, subordinated interests, and residential real estate properties. Anworth Mortgage Asset Corporation qualifies as a REIT for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Anworth Mortgage Asset Corporation was founded in 1997 and is based in Santa Monica, California.

#37 - American Healthcare REIT

NYSE:AHR
Stock Price: $13.06 (-$0.16)
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.
AGNC Investment logo

#38 - AGNC Investment

NASDAQ:AGNCP
Stock Price: $23.21 (+$0.12)
Dividend Yield: 7.63%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. The company funds its investments primarily through collateralized borrowings structured as repurchase agreements. It has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.
American Finance Trust logo

#39 - American Finance Trust

NASDAQ:AFINP
Stock Price: $0.00
Dividend Yield: 7.81%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A
American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate investment trust listed on the Nasdaq focused on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution related commercial real estate properties in the U.S.
how to start investing in real estate: Image of a small house on a calculator

Key Points

  • Real estate investments offer diversification and a range of benefits, including potential appreciation, cash flow generation, portfolio diversification, tangible assets and tax advantages.
  • Understand the pros and cons of real estate investing before you get started.
  • Tailor your investment strategy to fit your financial goals, risk tolerance and timeline to achieve long-term success.

Are you ready to embark on an exciting wealth creation and portfolio diversification journey? Real estate investments offer a promising avenue for individuals looking to secure their financial future. Whether you're a beginner exploring your first investment or a seasoned investor seeking to expand your horizons, understanding how to start investing in real estate is crucial.

Real estate investing offers a unique combination of potential financial rewards and long-term stability. Let's take some time to discuss valuable insights and practical advice on how to get started in real estate, empowering you to make informed investment decisions.

Before we dive into the diverse range of real estate investments, let's address the fundamental question: How to start in real estate investing? We will explore step-by-step strategies, share tips for beginners and highlight where to start investing in real estate for optimal results. 

How Real Estate Makes Money

Real estate investment offers various avenues for individuals to generate income and build wealth. Whether you're a beginner looking to start investing in real estate or someone interested in diversifying their investment portfolio, learning how to invest in real estate is essential, and there are several ways to participate in this lucrative market.

One of the most common methods real estate investors utilize is physical property ownership. As a real estate investor, you can purchase residential, commercial, or industrial properties to generate rental income and benefit from property appreciation over time. This approach requires careful research, property management and understanding local market conditions.

A great place to learn real estate investing for beginners is to research real estate investment trusts (REITs). For those seeking a more accessible entry point, REITs provide an opportunity to invest in real estate without direct property ownership. REITs are companies that own, operate or finance income-generating real estate properties. 

By investing in REITs, individuals can become shareholders and earn dividends from the rental income and property sales of the underlying real estate assets. If REITs interest you, look for companies like Goldman Sachs Asset Management division for multiple real estate investment opportunities.

Another avenue is investing in mortgage-backed securities (MBS). These securities represent ownership in a pool of mortgage loans. 

When individuals or institutions obtain mortgages to purchase properties, these loans are often bundled together and sold as MBS to investors. Individuals can earn income from the interest and principal payments made by borrowers.

Real estate-related stocks offer another opportunity for investors. These stocks belong to companies involved in various aspects of the real estate industry, such as property development, construction, management or real estate services. Real estate-related stock investment can expose investors to companies ranging from penny stocks to blue-chip companies. By investing in these stocks, individuals can benefit from the growth and profitability of these companies and the broader real estate sector. Investing in stocks also provides you the option to make dividends. Finding the best dividend stocks will help your portfolio grow faster. 

Bonds are also an option for investing in real estate. Real estate bonds issued by companies, developers or municipalities allow investors to lend money for real estate projects in exchange for regular interest payments. At maturity, the principal amount goes back to the bondholders.

Another great place to learn real estate for beginners is exchange-traded funds (ETFs). ETFs focused on real estate provide an additional investment avenue because these funds comprise a diversified portfolio of real estate-related assets and trade on stock exchanges. By investing in real estate ETFs, individuals can gain exposure to a broad range of real estate investments, including REITs and real estate stocks, without needing individual security selection. 

By investing in real estate, whether through physical property ownership, REITs, MBS, real estate-related stocks, bonds or ETFs, individuals can generate income, benefit from property appreciation and diversify their investment portfolios. 

Reasons to Invest in Real Estate 

Real estate investment offers many benefits and opportunities, making it an attractive option for beginners and seasoned investors. Whether you're looking to generate passive income, build long-term wealth or diversify your investment portfolio, real estate provides several compelling reasons to consider investing.

Steady Cash Flow 

Real estate investments, such as rental properties, can provide a steady stream of rental income, offering a reliable source of cash flow. This income can help cover mortgage payments and property maintenance costs. Some properties even generate profit. Real estate-related ETFs that pay dividends are also a great option if you are looking for steady cash flow. 

how to start investing in real estate infographic

Appreciation Potential

Physical real estate property has the potential to appreciate over time. Historically, real estate prices have tended to increase, allowing investors to benefit from capital appreciation, which can lead to significant returns on investment when properties are sold. Organizations like the National Association of Realtors provide research and statistics to help you understand the appreciation potential in your area. 

Leverage

Real estate investments offer the opportunity to use leverage, meaning you can purchase properties with borrowed money. You can control a valuable asset with a smaller upfront investment. Leveraging can amplify your returns when property values rise.

Portfolio Diversification

Investing in real estate and related securities can provide diversification benefits to your investment portfolio. Real estate often exhibits a low correlation with traditional assets, helping to reduce overall portfolio risk.

Tax Advantages

Real estate investors can take advantage of various tax benefits, including deductions for mortgage interest, property taxes, depreciation and operating expenses. These deductions can lower your taxable income and increase your after-tax returns.

Inflation Hedge

Real estate investments have the potential to serve as a hedge against inflation. As inflation increases, rental income and property values usually rise, allowing real estate investors to preserve and potentially increase their purchasing power.

Control and Tangible Asset

Unlike other investments, real estate provides investors with a tangible asset they can see, touch and control. This sense of ownership can be appealing and give a sense of security.

Potential for Passive Income

Real estate investments offer opportunities for passive income. Rental properties, for example, can generate ongoing rental income, allowing you to earn money while minimizing active involvement. Learning how to choose the best dividend-paying real estate stocks is another way to generate passive income. 

Long-Term Wealth Building

Real estate investments have the potential for long-term wealth accumulation. Over time, investors can build equity and accumulate substantial wealth as property values appreciate and mortgages get paid down.

Flexibility in Investment Options

Real estate investing offers a range of investment options to suit different preferences and risk appetites. You can invest in physical properties, REITs, MBS, real estate-related stocks, exchange-traded funds (ETFs) and more.

Real estate investing offers numerous advantages for investors. After discussing the benefits of real estate investing, it is important to discuss strategies for beginners to consider when embarking on real estate. By familiarizing ourselves with these practical approaches and techniques, investors can gain valuable insights into how to invest in real estate effectively.

How to Invest in Real Estate for Beginners: Strategies to Consider 

For beginners, navigating the world of real estate investing may seem daunting at first. Still, the right strategies and knowledge can lead to financial growth and wealth accumulation. 

Let's explore strategies investors can consider when venturing into real estate investment. 

These strategies will provide a solid foundation and guide investors toward making informed decisions in their investment journey. Whether you're looking to invest in physical properties, REITs or other real estate-related options, these strategies will help you navigate the nuances of the real estate market and set you on the path to success. 

Rental Properties

Investing in rental properties involves purchasing residential or commercial properties to rent out to tenants. This strategy allows you to generate rental income, providing a steady cash flow and potential long-term appreciation. As a landlord, you are responsible for property management, tenant screening and maintenance. It's important to carefully analyze rental markets, property expenses and potential rental income to ensure positive cash flow and a favorable return on investment.

House Flipping

House flipping involves purchasing properties that require renovation or repair, making the necessary improvements and selling them quickly for a profit. This strategy requires careful analysis of market trends, property values and renovation costs. House flipping can be a high-risk, high-reward strategy, as success depends on accurately estimating costs, managing renovations efficiently and selling the property at a higher price.

Real Estate Investment Trusts (REITs)

REITs are companies that own, operate or finance income-generating real estate. By investing in REITs, you can gain exposure to a diversified portfolio of properties without directly owning them. REITs typically pay dividends to shareholders based on the rental income their properties generate. This strategy offers a convenient and accessible way to invest in real estate with lower capital requirements and greater liquidity.

Real Estate Crowdfunding

Crowdfunding platforms allow investors to pool their funds for various real estate projects. You can invest in properties such as residential complexes, commercial buildings or development projects through these platforms. Real estate crowdfunding allows diversifying your investments across different properties and locations while accessing deals traditionally available only to institutional investors.

Mortgage-Backed Securities (MBS)

MBS are investment products representing an ownership interest in a pool of mortgages. When investing in MBS, you invest in the underlying mortgages and receive some of the borrowers' interest payments. Mortgage-backed securities offer a way to invest indirectly in real estate and benefit from the interest income generated by mortgage payments.

Real Estate ETFs

Real estate ETFs focus on real estate that provides investors with a diversified portfolio of real estate-related assets. These ETFs typically hold shares of REITs, real estate development companies or other real estate-related securities. 

Real estate ETFs offer flexibility, liquidity and the opportunity to invest in the broader real estate market with a single investment. For instance, if you are only interested in investing in farm-related real estate, an ETF can help you reach that goal. 

Real Estate Stocks

Another strategy to consider is investing in publicly traded companies in the real estate sector. These companies may include real estate developers, property management firms, home builders or companies involved in real estate services. By investing in real estate stocks, you can gain exposure to the real estate market and benefit from the growth and profitability of these companies.

Each strategy offers unique opportunities and considerations for beginners investing in real estate. It's important to thoroughly research and understand the specifics of each strategy, assess your risk tolerance and align your investment goals with the chosen approach. 

Real Estate Mistakes to Avoid

When investing in real estate, it's essential to approach the market with knowledge and caution to avoid common pitfalls that can hinder your success. Real estate can be a lucrative investment but carries inherent risks and challenges. Understanding the potential mistakes and how to avoid them can help you navigate the real estate landscape more effectively. Let's take a few minutes to discuss some of the common real estate mistakes and provide guidance on how to avoid them.

  • Lack of proper research and due diligence: One of the most critical mistakes is diving into an investment without thorough research. Failing to research the local market, property values, rental demand and potential risks can lead to poor investment decisions. Take the time to conduct market research, analyze comparable property prices, assess the rental market and thoroughly inspect the property before purchasing.
  • Overextending financially: Stretching your financial limits by purchasing properties beyond your means can be a grave mistake. Create a realistic budget and stick to it. Consider all the costs associated with the investment, including property taxes, insurance, maintenance and potential vacancies. Avoid overextending yourself by investing in properties that align with your financial capabilities and long-term investment goals.
  • Ignoring cash flow considerations: Positive cash flow is vital for a successful real estate investment. Failing to accurately estimate expenses, rental income and potential vacancies can lead to negative cash flow, making it difficult to sustain the investment. Ensure your rental income covers all expenses and leaves room for unexpected costs. Conduct a thorough analysis of the property's potential cash flow before committing to the investment.
  • Neglecting property management: Proper property management is crucial for maintaining and maximizing your investment's value. Neglecting property management responsibilities or failing to hire competent professionals can lead to decreased property value, tenant dissatisfaction and increased turnover. Consider hiring a reliable property management company or educate yourself on effective property management practices to ensure the property is well-maintained and tenants are satisfied.
  • Lack of diversification: Putting all your eggs in one basket by investing solely in one type of property or location can be risky. Real estate markets can fluctuate, and specific areas may experience downturns. Diversifying your real estate portfolio by investing in different types of properties, locations and investment vehicles, such as REITs or real estate stocks, can help mitigate risks and increase your chances of overall success.
  • Failing to have an exit strategy: It's essential to have a clear exit strategy in mind when entering a real estate investment. Unexpected circumstances or changes in personal circumstances may require you to sell the property earlier than planned. Not having an exit strategy can lead to potential financial losses or an inability to capitalize on profitable opportunities. Consider various exit strategies, such as selling, refinancing or leasing options and prepare to adapt to changing market conditions.
  • Emotional decision-making: Allowing emotions to drive investment decisions can be detrimental. Approach real estate investing with a rational and objective mindset. Avoid getting attached to a property or making impulsive decisions based on personal preferences. Instead, focus on investment potential, financial feasibility and long-term prospects.

Understanding these common real estate mistakes and implementing strategies to avoid them can increase your chances of success in real estate investing. Remember to seek professional advice, continuously educate yourself and stay vigilant in monitoring your investments to make informed decisions and optimize your returns.

How to Fund Real Estate Investments

Funding real estate investments is a crucial aspect of building a successful portfolio. Whether you're investing in physical properties, REITs, mortgage-backed securities (MBS) or other real estate assets, understanding the various funding options available is essential. 

Let's explore different ways to fund real estate investments, providing a comprehensive overview of the funding process for other asset types.

Utilizing personal savings is a common starting point for many real estate investors. You can accumulate funds to invest in real estate-related assets by saving up a portion of your income. This method allows for greater flexibility and control over your investments, as you don't rely on external financing.

When purchasing physical properties, obtaining a mortgage loan from a bank or financial institution is a prevalent funding method. With a traditional mortgage loan, you secure financing by making a down payment and repaying the loan over a fixed period with interest. This option suits investors looking to build equity and generate long-term returns through rental income or property appreciation.

REITs are investment vehicles that pool funds from multiple investors to purchase and manage income-generating properties. Investors can participate by purchasing publicly traded REIT shares or through non-traded REITs. Investing in REITs provides access to a diversified real estate portfolio without direct property ownership.

Mortgage-backed securities are financial instruments created by packaging together mortgage loans. Investors can purchase mortgage-backed securities through the secondary market, allowing them to invest in a pool of mortgages. These securities provide an opportunity to earn income through the interest payments made by homeowners on their mortgages.

Crowdfunding platforms have emerged as an alternative way to fund real estate investments. These platforms connect investors with real estate projects seeking funding. Investors can contribute capital to a specific property or portfolio and earn returns based on the project's performance.

Private equity funds pool capital from accredited investors to invest in real estate opportunities. Professional investment firms manage these funds and offer access to larger-scale projects that may not be available to individual investors. Private equity funds typically require higher minimum investments and have more extended lock-up periods.

Partnering with other investors or real estate developers is a way to share the financial burden and access more significant investment opportunities. Partnerships can take various forms, such as joint ventures or limited partnerships, where investors contribute capital and share in the profits and risks of the investment.

If you own a property, you can tap into its equity through a home equity loan or line of credit. This option allows you to leverage the value of your existing property to fund new investments. However, it's essential to consider the risks involved and ensure you can manage the additional debt.

Some financial institutions and private lenders offer specialized real estate investment loans. These loans are designed specifically for real estate investors and may have different terms and requirements than traditional mortgage loans.

Funding real estate investments involves a range of options, from personal savings and traditional mortgage loans to REITs, MBS, crowdfunding and partnerships. Each funding method has advantages and considerations, and the choice depends on your investment goals, risk tolerance and financial circumstances. 

How to Buy Real Estate Stocks

Investing in real estate stocks allows individuals to gain exposure to the real estate market without directly owning physical properties. Real estate stocks are shares of publicly traded companies that own, develop, manage or finance real estate assets. These stocks represent ownership in real estate companies and can provide potential benefits such as diversification, liquidity and the opportunity to participate in the growth of the real estate sector.

  • Research and choose a real estate stock: Research companies that align with your investment goals and preferences. Look for companies with a strong track record, diversified portfolios and solid financials. Research that company's financial history and consider reviewing its last earnings call
  • Select an investment platform: Choose a reputable online brokerage platform that offers access to real estate stocks. Ensure the platform provides a user-friendly interface, competitive pricing and access to the stock exchanges listing real estate stocks.
  • Open an investment account: Sign up for an investment account with the chosen brokerage platform, which typically involves providing personal information, verifying your identity and funding your account.
  • Conduct due diligence: Conduct thorough due diligence on the selected real estate stock before making investment decisions. Review the company's financial reports, performance history, management team, competitive position and any relevant news or events that may impact its prospects.
  • Place a trade: Once you are ready to invest, use your brokerage platform to place a trade for the chosen real estate stock. Specify the number of shares you wish to purchase and the order type (e.g., market or limit order) to execute the trade.
  • Monitor and manage your investment: Actively monitor your investment after buying real estate stocks. Stay informed about company updates, industry trends and market conditions. Keep watch on essential factors like interest rates. Real estate stocks tend to drop as interest rates rise. Consider setting price alerts or using stop-loss orders to manage your risk.

Real estate stocks can offer several advantages. They provide exposure to the real estate market, which historically has shown potential for long-term growth and income generation. Additionally, real estate stocks offer greater liquidity than physical properties, as they can be easily bought or sold on the stock exchange. Investors can also benefit from dividend payments, as many real estate companies distribute a portion of their earnings to shareholders.

Remember to thoroughly research and understand the fundamentals of the companies you're considering and carefully evaluate your investment objectives before buying real estate stocks.

Top Features to Look for in a Real Estate Investment

When investing in real estate stocks, having access to essential information and analytical tools is crucial for making informed decisions. A comprehensive understanding of the key features and resources available can significantly aid investors in evaluating real estate stocks and identifying opportunities. Let's explore various features to consider when assessing real estate stocks. 

Understanding the significance of each feature will empower investors to conduct thorough analyses and make informed decisions in the dynamic world of real estate stock investing. Let's dive into the key features that play a pivotal role in evaluating real estate stocks.

Analyst Ratings

Analyst ratings provide insights into how experts and financial analysts view a particular real estate stock. These ratings are based on comprehensive research, industry knowledge and financial analysis. They can help investors gauge a real estate stock's overall sentiment and potential performance. Companies like Simon Property Group (NYSE: SPG) are large, complex and difficult for entry-level investors to gauge. Utilizing the analyst rating for Simon Property Group will help you understand how seasoned professionals see the company. 

how to start investing in real estate with SPGCharts

Charts display the historical price movements and trends of a real estate stock. They allow investors to visualize the stock's performance over time, identify patterns and make informed decisions based on technical analysis. Reviewing the Prologis (NYSE: PLD) chart reveals the logistical real estate company's struggles during the pandemic years and the company's fight back to profitability after the pandemic. 

Competitors

Understanding the competitive landscape is crucial in evaluating real estate stocks. Analyzing competitors provides insights into market dynamics, industry trends and real estate companies' relative strengths and weaknesses. This information helps investors assess a company's competitive positioning and growth prospects. Industries like cellphone and radio tower real estate are very niche, so learning about American Tower (NYSE: AMT) competitors could help you invest in American Towers or lead you to an unknown and more lucrative competitor. 

Dividend Information

Dividend information is essential for income-oriented investors. Many real estate investment trusts (REITs), ETFs, and some stocks distribute a significant portion of their earnings to shareholders as dividends. Evaluating dividend history, yield and sustainability can be valuable when considering real estate stocks for income generation. For instance, Public Storage's (NYSE: PSA) dividend history shows solid dividend returns. Looking for high-yielding dividend stocks is a great way to generate passive income and grow your investment portfolio. 

how to start investing in real estate with PSA

Insider Trades

Monitoring insider trading activity can provide insights into the sentiments and actions of company insiders, such as executives and board members. Significant insider buying or selling can signal their confidence or concerns about the company's prospects, which may influence investors' decisions. Reviewing Equity Residential's (NYSE: EQR) insider trading history shows that there has been some substantial insider activity. 

Insider trading information for understanding real estate investing: EQRInstitutional Ownership

Examining the level of institutional ownership in a real estate stock reveals the confidence and interest of large institutional investors, such as mutual funds and pension funds. High institutional ownership may indicate positive prospects for the stock, as these investors conduct thorough due diligence before making significant investments. Reviewing institutional ownership in Digital Realty Trust (NYSE: DLR) reveals a lot of activity, both purchasing and selling from institutions indicating each institution's faith or lack of trust in the company. 

Each feature plays a vital role in the comprehensive analysis of real estate stocks. Investors should consider combining these factors to develop a well-rounded understanding of a real estate company's potential and risks before making investment decisions.

Pros and Cons of Investing in Real Estate 

As with any investment strategy, weigh the pros and cons before investing. While real estate offers numerous opportunities for wealth creation and portfolio diversification, understand this asset class's advantages and potential drawbacks. 

Let's examine the pros and cons of investing in real estate to provide investors with a comprehensive overview of the key factors to consider. By gaining insights into the benefits and challenges, you will be better equipped to make informed decisions and navigate the dynamic landscape of real estate investments.

Pros

The benefits can include: 

  • Potential for appreciation: Real estate has a proven track record of long-term appreciation, allowing investors to benefit from capital gains as property values increase.
  • Cash flow and passive income: Rental properties can generate consistent cash flow, providing investors with a steady stream of passive income. Rental income can help offset mortgage payments and expenses while potentially generating a surplus.
  • Portfolio diversification: Real estate investments offer diversification benefits by adding an alternative asset class to your portfolio. This diversification can mitigate risks associated with traditional investments, such as stocks and bonds.
  • Tangible asset: Unlike stocks or bonds, physical real estate investments provide tangible assets you can see, touch and control. This aspect can offer a sense of security and stability to investors.
  • Tax advantages: Real estate investments often come with tax benefits, including deductions for mortgage interest, property taxes, depreciation and expenses. These tax advantages can help reduce your overall tax liability.

Cons

The downsides can include: 

  • High initial capital requirement: Investing in physical properties typically requires a substantial upfront investment, including down payments, closing costs and ongoing maintenance expenses. It can limit entry for some investors.
  • Property management and maintenance: Owning and managing real estate properties can be time-consuming and require active involvement. Dealing with tenants, property maintenance and unexpected repairs can complicate your investment journey.
  • Market volatility: Real estate markets can experience fluctuations influenced by various factors such as economic conditions, interest rates and local market dynamics. This volatility can impact property values and rental income.
  • Liquidity challenges: Real estate investments are relatively illiquid compared to stocks or bonds. Selling a property may take time and involve transaction costs, limiting your ability to access funds if needed quickly.
  • Market knowledge and risk: Successful real estate investing requires a deep understanding of market trends, local regulations and property valuation. Lack of knowledge or miscalculations can lead to financial losses or missed opportunities.

Build Your Empire, Brick by Brick

Real estate investing offers a promising avenue for individuals seeking wealth creation and portfolio diversification. Real estate investments provide unique advantages, including the potential for appreciation, passive income generation, portfolio diversification and tax advantages. The tangible nature of real estate assets adds a sense of security and stability to your investment portfolio.

However, successful real estate investing requires knowledge and understanding. Staying informed about market trends, property valuation and risk assessment is essential. By equipping yourself with this knowledge and seeking the guidance of experienced investors, you can make informed decisions and navigate the dynamic landscape of real estate investments effectively.

Tailoring your investment strategy to your financial goals, risk tolerance, and timeline is crucial. Whether you choose physical properties, real estate stocks, bonds, ETFs or REITs, customizing your portfolio will ensure a well-balanced and diversified approach. 

As you embark on your real estate investment journey, remember to continuously educate yourself, adapt to market dynamics and make well-informed decisions. By doing so, you can work toward achieving your financial aspirations through real estate investments with confidence. Embrace the opportunities, leverage your knowledge and make strategic decisions as you embark on this exciting investment path.

FAQs

As you embark on your real estate investment journey, you may have some questions. Let's discuss the most frequently asked questions to provide valuable insights. From getting started as a beginner to investing with limited funds, we have answers to common queries that can help you navigate the world of real estate investing.

How do beginners start real estate investing? 

For beginners, starting in real estate investing begins with education and research. Begin by understanding the basics of real estate investing, including different investment options and strategies. Consider networking with experienced investors, attending seminars or workshops and reading reputable books or online resources. Building a solid foundation of knowledge will empower you to make informed decisions and minimize risks as you enter the real estate market.

What is the best real estate to invest in for beginners? 

The best real estate investment for beginners depends on various factors such as location, budget and personal preferences. Some common options for beginners include single-family homes, duplexes or small multi-unit properties. These types of properties often provide simplicity in terms of management and financing. 

Additionally, exploring real estate investment trusts (REITs) or real estate crowdfunding platforms can be a viable option for beginners to gain exposure to the real estate market with lower capital requirements.

How do you start investing in real estate with as little as $500? 

Starting with limited funds may seem challenging, but there are options to invest in real estate with smaller amounts. Real estate crowdfunding platforms allow individuals to pool their resources and collectively invest in real estate projects. Crowdfunding enables you to access a diversified portfolio of properties with relatively low investment amounts. 

Exploring real estate investment trusts (REITs), stocks and ETFs can provide an opportunity to invest in real estate with smaller capital. These investment vehicles allow you to buy shares in a professionally managed real estate portfolio.

Jeffrey Neal Johnson

About Jeffrey Neal Johnson

  • jeffrey.neal.johnson@gmail.com

Contributing Author

Retail and Technology Stocks

Experience

Jeffrey Neal Johnson has been a contributing writer for MarketBeat since 2023.

Areas of Expertise

Technology, cryptocurrency, biotechnology, defense sector, automotive industry, hospitality sector

Education

Associate of Arts in Business Development

Past Experience

Strategic business development and ventures 

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