RCA in the commercial property press:

Real Estate Stock Talk: Should You Buy REITs?

Forbes reports: If you don't already have a significant chunk of your net worth invested in rental property, it's time to think about buying stock in real estate companies. But in our first Real Estate Stock Talk, Alexander Goldfarb, a seasoned stock analyst, and Peter Slatin, a veteran journalist and industry observer, suggest you go slow.

Slatin says: "Once you've accepted the diversification argument, there's another strong argument for investing in real estate: income. The nasty lesson of the past few years is that growth is part of the story, but it should never be the whole story.

So why REITs? Well, there is a lot to be said for professional, experienced management that understands its industry. Why do lay people feel they can invest directly in real estate? It looks simple. Buy it, fix it up, rent it, re-sell it. Yes, but ... Real estate investor Sam Zell thought he could do that with the Tribune Co., but he didn't know beans about the media (other than how to give interviews).

But Zell and other REIT managements have come out looking pretty darn good against all those private fund-runners. The REITs were big sellers rather than buyers during the peak, according to the numbers at Real Capital Analytics. And this year they've raised a lot of capital, more than anybody else, as the possibility of distressed sales looms ever larger."

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Posted by: Matthew Stone

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