 Come back ladies and gentlemen, boys and girls and gentlemen all you just, you can hear my voice. I'm a little bit under the weather today, but we're going to keep the show going today. If you logged in, you're talking about REITs today, Real Estate Investment Trust. People have asked me about this all the time, is it REITs a good investment or a bad investment? Where do I start with REITs for a beginner? Also what are the best REITs out there to invest in? And people ask for examples of how to REITs work. That's what we're going to talk about on today's episode. But ladies and gentlemen, if you haven't done so already, please go ahead and hit that like and subscribe, comment and share button. And as always, I don't have a lot of time and I definitely know you guys and girls have a lot of time. So we're going to jump straight into it. As our friend Brad Thompson say, you don't have to deal with toilet paper tenants. And I forgot his other three tees because it's just like buying a Google stock. You log on to the website, you buy a particular stock and that's it. You don't have to go out and deal with tenants. You don't have to go out and deal with toilets and maintenance and things like that. Right. But you still get the way to get inside of REITs. It's just like buying a particular stock. So people always ask, well, how does a REIT work? On Real Estate Investment Trust, you have different ones. You got residential, you got commercial. You have land ones. These pretty much these trusts that get together, they raise money. They go out, they buy up a shopping center. They purchase the shopping center. They rent the shopping center to tenants and the tenants pay rent. When the tenants pay rent, the rent is turned around and it's paid back to the investors. Meaning, if you pretty much purchase a stock, your dividend is paid in formal REITs. Sounds so simply easy, right? Wow. So I can get a part of the shopping center just by investing into this particular stock. You are correct. The thing I don't like about REITs relates so much to the stock market. You go back to 2020. When you look at 2020 and you look at stocks, what happened to REITs? Real Estate took off and had a boom because we live in a very low interest rate society. Part of the stimulus package for real estate was what we did was cut interest rates. When we cut interest rates, when we cut interest rates, that's pushed the prices of houses up. If you don't recall, houses all over the place was going up because houses became cheaper. People could afford more home for less, especially big houses. People was able to purchase them for less. So when we looked at REITs during that timeframe, stocks stuck up to place in the beginning of the year once we had the pandemic. But you saw real estate start to have a boom. But rather, real estate was having this boom, REITs, in the same time didn't have the same boom. This will lead you to the question to why. This is my way to diversify. I went out and got a REIT so I can diversify my portfolio into real estate. My home value equity has been going up. Why haven't my REIT stocks been going up? This is one of the disadvantages I do not like about REITs because they correlate so much to what the stock market is doing. When the entire stock market was down, REITs were down as well. So that's my personal way of disadvantage. If you can't think of a disadvantage, you probably don't know an investment that well enough. Second is how does a REIT start? How do you start investing into a REIT as a beginner? It's very easy to start investing into a REIT. It's just you go on to the stock market, you know what type of REIT you're looking for. Very easy to search them. As you're searching them, you go out and you find a stock symbol. Once you have that stock symbol, what happens when that stock symbol is you can purchase that stock symbol just like you purchase with anything else, right? So you protect that stock symbol and you put it inside of E-Trade, TD Ameritrade, Interactive Brokers or whatever, TD Ameritrade or whatever, right? Once you have that, you turn around and once you have that, you find that REIT that you want to do, you purchase it just like you purchase a stock. Very easy to get into. Now, there's a ton of REITs out there. You have some in residential housing. You have some in commercial. You have some in land, all types of REITs that are out there. Some that turns around that rents their space to Home Depot. So you ride down the road and you see Home Depot. You think they own this big building? No, most of them lease the building that they purchased at lease from REIT, Real Estate Investment Trust. They're a tenant of REIT and they pay their leasing off to particular stocks, right? As we know, we know that renting right now is very expensive. Renting right now is more than many people's mortgages. So you would think REITs would be killing the hand of a fist, but that's not necessarily the truth as we look at the current state of the economy. Another thing is an example of a REIT is I can't think of a particular name, but just like when you go to your local shopping center, as I said earlier, Walmart, they don't go out and buy that particular spot. They go out and they rent the spot, they hang their name up on it, and they pay a Real Estate Investment Trust at lease. Something like a lease back. So that's an example. What are the best REITs out there investment-wise? I like the ones that are, I don't like commercial properties as much. I like residential because residential REITs, we all have to have a place to live. Everybody won't be able to afford a house. Look at the average house home purchase closure price in America in 2022. It's $430,000. The average home in America is sold for $430,000. You multiply that or not multiply, you compound that by 4%, which is the average compounding rate of real estate. If it compounds 4% for the next 20 years and 20 years, you know the average home price in America is going to be $955,000 average home price. So we look at that. Is wages going to raise that high so people are able to afford a million dollar home? Maybe, maybe not. Look at what people are getting paid today, will they get paid that in the future? So you look at that, I look at residential, your son, your daughter, your grandchildren will need a place to stay. So residential will always, always, always be in demand in my belief. When it comes down to commercial, as we look at the trend of society, we're seeing less big tall guy strappers every day. Now we're seeing warehouses, grocery stores actually use REITs. Businesses use REITs, but nowadays, if you look at the trend of America, you're looking at grocery stores now without a location. Meaning that I've seen some grocery store proposals be made that, hey, it's just going to be one big bear, it's just going to be a fulfillment center. We're going to build this big spot. This spot is going to be filled with robots that's going to be able to put boxes together, give them to a driver. The driver is going to be able to take the box and deliver it to one set home. That's correct. You're going to be able to go into your app, order your fruits and vegetables. I want an avocado. I need some kale. I need some blueberries, some raspberries, banana. I'm describing my morning smoothie. You're going to take that, put that into, I'm going to press the send button on my app, it's going to go to the fulfillment center. The fulfillment center is going to pull up my blueberries, my raspberries, my bananas, my orange juice, kale, avocados, put them inside of a box, hand it out to a driver. A driver's going to deliver to me something like what you see with Uber. So the good old days of getting that shopping cart, a buggy if you're from the south, one in which your wife, son, husband, daughter, friends and picking out whatever is hot on the grocery store, long gone on those days, I believe, going into the future. You can parse to see this with Uber. Amazon has already tried this with stores as well. So that's why I will hold off on like commercial. I like land. Land is always going to be a value hurt. You heard people say land, it'll never be purchased again. I forgot the famous saying of Franklindale, Roosevelt, but that's why I won't jump off of land. Now with food and groceries and with residential, we would need it with commercial, I don't know. So I'll be interested in apartment complexes that are purchased through REITs, things like that. I think I don't like about it. It's too close to the stop market. And yes, that's going to be my take on investment into REITs. Ladies and gentlemen, that's going to conclude today's episode. Just dealing with my, as you can see right now, my throat a little bit under the weather. But today's episode, we talked about what a REITs, how to invest into a REIT as a beginner. Also, how to, you know, what are the best REITs that I like for myself particularly? We talked about the disadvantages of REITs. How close it correlates to the stop market. One of the advantages is it's so easy to get into just like purchasing Google stock. The downside is it correlates just like a lot of stocks to seal the market. All right? And we talked about the disadvantages, the advantages, how to find REITs and how to invest into REITs. So hopefully you guys and girls got something out of this episode. Until the next video podcast, cartoon or whatever it's crazy to see me do across the globe. My name is Chris Dykes, peace, be safe, I'm out and thank you.