johng@convex.UUCP (01/04/85)
I am interested in acquiring some real estate investments in an IRA.
It appears that the way to accomplish this is through Real Estate
Investment Trusts (REIT's) or limited partnerships. REITs have the
advantage that they are traded on the major exchanges and hence are
fairly liquid. That way, if the yield on a REIT drops or is out of
line with the yield of other potential investments, I can sell the
REIT. With real estate limited partnerships, once you buy in, you're
usually in for the life of the partnership.
Does anyone who has REIT's or limited partnerships in their IRA have
any advice (pro or con) about either?
Are there any REIT's that you find particularly attractive?
John Golenbieski
Convex Computer Corp.
{allegra|ihnp4|uiucdcs}!convex!johngjgpo@ihu1e.UUCP (John, KA9MNK) (01/08/85)
I just purchased 100 shares of Mortgage Growth Investors (ASE - MTG) for my IRA. MTG is trading at about 17.50 (Jan. 7 close). Value Line rates MTG 2 (above average) for both Timeliness and Safety. Merrill Lynch has a triple buy (their highest, 1/1/7 I think) opinion on MTG. MTG's yield is 8.4%. Beta is 0.55. Of the three types of REITs available, long-term mortgage REITs and equity REITs are considered conservative investments (just what you'd want in your IRA). The short-term mortgage REITs are more speculative. A lot of REITs went belly-up in the 1970s. When picking a REIT, look for one that went through the bloodbath and survived. If your REIT performed at all well from ~1973 through ~1976, you can probably assume that its management knows what it's doing. John Opalko AT&T Bell Labs Naperville, IL
morse@leadsv.UUCP (Terry Morse) (01/16/85)
> > I am interested in acquiring some real estate investments in an IRA. > It appears that the way to accomplish this is through Real Estate > Investment Trusts (REIT's) or limited partnerships. REITs have the > advantage that they are traded on the major exchanges and hence are > fairly liquid. That way, if the yield on a REIT drops or is out of > line with the yield of other potential investments, I can sell the > REIT. With real estate limited partnerships, once you buy in, you're > usually in for the life of the partnership. > > Does anyone who has REIT's or limited partnerships in their IRA have > any advice (pro or con) about either? > > Are there any REIT's that you find particularly attractive? > > > John Golenbieski > Convex Computer Corp. > {allegra|ihnp4|uiucdcs}!convex!johng I have a limited partnership called CCIP 2 in my IRA. It is liquid insofar as I can sell it once a year. It has been set up exclusively for tax exempt investors, unlike most limited partnerships or REIT's. It yields 9% per year minimum and distributes 75% of the profits. The offering closes in July of '85, and lasts for 10 years. I wouldn't invest in a conventional LP, since they are better suited for tax shelter and capital gain. I don't know much about REIT's, so I will give no advice on them.
geb@cadre.UUCP (01/27/85)
I was recently approached to buy into a new real estate partnership. I decided not to do it. At this time I would simply caution anyone interested in real estate investment to consider two points: 1> There is a significant probability that the tax reform will occur, eliminating many of the tax breaks for real estate ownership. Even if you don't need or use real estate as a tax shelter, many, many people do, and any change in this regard is very likely to adversely affect real estate prices. 2> Many observers think that we are at a peak in the real estate market, or at least that prices will not increase at nearly the rates that they have over the last 15 years.