Investing 102

[Woody]

Originally Posted by chichirone

Going to school on these. If you had an opportunity to invest in shares of a commercial real estate LLC or buy real estate shares publicly shared, which would be more attractive to you? Better question may be, what attributes would you look at if considering a commercial real estate LLC that is being organized to buy a single location or land development project?

One thing to watch out for with REITS is that they are very interest rate sensitive. If you believe we are going into a rising interest rate environment you could expect lower share prices. The last few weeks is a pretty good example. As the 10-year yield has risen, most REITs share prices have declined.