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Pro
I still don’t understand how REITs work and the risks. Anyone here familiar?
Biggest risk is that the REIT is restricted to real estate assets and only ones that qualify under the REIT rules, and the administrative costs for maintaining a REIT can be high. Biggest upside is that the REIT is required to distribute out 90% of its taxable income, and real estate has been a historically lucrative investment (setting aside ‘09 and ‘08) Beyond that, it’s just like investing in anything else - you have to trust the investment vision and management team.
Check out AirDNA, great for looking at investment locations