Investing in REITs

"REITs give you the perk of the cash flow that real estate leases provide, but with the benefit of a common stock's liquidity."

"Before deciding if REITs are the right investment for you, it's important to measure their merits, point by point, against those of other investments."

"Today's REITs are fully integrated operating companies that can handle all aspects of real estate operations internally."

"Real estate prices and profits move in cycles, usually predictable in type but not always in length or severity."

"There's such an assortment of "REITized" properties that it's hard to know where to begin."

"Some myths exist about REITs, myths that in the past scared off all but the bravest investors."

"The REIT structure was officially sanctioned by Congress and signed into law in 1960."

"Excellent REIT bargains had sprouted up by the end of 1990, and these bear market lows set the stage for a major bull market that thrived from 1991 through 1993 and ushered in the great IPO boom of 1993-94."

"Using FFO enables both REITs and their investors to correct . . . depreciation distortion."

"It is vital for _all_ REIT investors to know what makes a blue-chip REIT different from the rest."

"There are proven methods and formulas that can provide crucial insight into a REIT's relative investment strengths and weaknesses, historical and prospective ranges of fair pricing, and, in particular, the timing of buying or selling a specific REIT."

"For most investors, an absolute minimum of six REITs is necessary to achieve a bare-bones level of diversity of sector and location. "

"All REITs are subject to two major hazards: an excess supply of available rental properties and rising interest rates."

"Probably the most common type of specific-REIT problem that can cause investor headaches is the error in judgement that raises significant management credibility questions."

"It obviously won't matter how many great real estate companies want to become REITs if there is insufficient investor demand for REIT shares."

"In the future, much of the available real estate capital will flow to those REITs that "can do it all.""