I was just looking into an opportunity to invest in a private market REIT (mostly focused on multi-unit residential properties), I had explored the possibility of borrowing from a line of credit (interest on loan would be considerably lower than dividend). The margins were thin due primarily to taxes, so I decided against leverage. If any of the details presented in this thread turn out to be true with the new tax bill, I will definitely reconsider leverage (responsibly of course) for this investment.
(responsibly of course) Private REITs can be very risky.
I have several public REITs, and several Preferred REITs.
The preferreds generally are paying between 7% and 8%.
Generally try to buy them under the $25 par price. Make sure it is liquid,
some have low daily sales. Make sure it is Cumulative, meaning if the dividend
is suspended the dividend continues to accumulate. Note: a preferred dividend
cannot stop until the regular stock dividend is zero. Possible call date may have some bearing on your purchase.
Fed just raised rates, which I thought would not be good for the preferreds, but mine went up on the news.
I have some REITs that hold Malls, a little more risky, but two that I bought and sold with a profit, are up considerably, I wish I had held. TCO, PEI