The Real Deal Miami

Financial advisors weigh in on today’s best real estate investments

January 12, 2010 02:18PM


The opportunity to get rich quick off of skyrocketing Real Estate Investment Trust shares has largely passed, but it still pays to diversify your portfolio by investing in the publicly-traded commercial property trusts, according to Money magazine. After REIT prices plunged by more than 70 percent between 2007 and 2009, vulture investors took note and the industry began raising capital in order to buy properties at rock-bottom prices. That sent shares soaring 100 percent since March, and it’s not too late to get in on their success. “You always should have some money in REITs because they are a great diversifier,” said Chris Cordaro, a financial adviser in Morristown, N.J., because REITs tend to move in a different direction than stocks. When it comes to choosing a REIT, analysts are recommending equity REITs over mortgage REITs, given the mortgage market’s current woes. Craig Guttenplan, an analyst at CreditSights, a research firm, recommended Simon Property Group, which signs most of its tenants to long-term leases and hasn’t been as damaged by falling rents and rising vacancies. Other recommendations included Boston Properties and Realty Income. Watch the video above to find out Money’s best investing bets of 2010, including real estate. [CNN Money]