Editors' Note: This article is meant to introduce High Yield Landlord, Jussi Askola's new Marketplace service.
What's Your Idea Of A Perfect Investment?
That's a tricky question, but those looking for above-average current returns, along with reasonably good price appreciation prospects over time - and with only modest risk - will certainly want to consider apartment communities, office and industrial buildings, shopping centers, and other similar investments. While some time ago, these highly profitable investments may have been reserved to high net worth individuals and institutions, it is today easier than ever before to invest in real estate through high yielding real estate securities or REITs.
Here, you might say, but only if there were an easy way to build a high yielding REIT portfolio, where experienced professionals could handle the business of researching and picking the most opportunistic REITs and share the results in an efficient manner. Well, read on. This is exactly what we are here for.
High Yield Landlord is a premium service dedicated to uncovering the most profitable and newest high-dividend real estate investment ideas. HYPO, our high yielding portfolio, is designed to maximize total return through fundamental value investing targeting undervalued real estate securities. As of today, it has a dividend yield of 8.4% with a conservative 78% payout ratio despite a yield that is double the index. Beyond the dividends, HYPO's holdings are trading at material discounts to our estimated intrinsic value - providing margin of safety and capital appreciation potential. We expect further dividend growth and market outperformance in the long run.
Our high-yield strategy is different from others in that it focuses predominantly on real estate securities trading at bargain valuations. We consider our strategy to be superior to others because:
- Real estate has historically outperformed most other asset classes including stocks and bonds. Adding a "value" component to real estate securities can result in exceptional results with GSA returning over 22% annually on its BUY picks on average since 1993.
- Income generated by real estate is by nature more consistent and predictable thanks to long lease contracts - reducing our investment risk.
- Every investment is backed by REAL TANGIBLE assets and not some speculative high-tech company with questionable "intangible" assets.
- Specialization, Specialization, Specialization… We outperform by being absolute experts in one sector, not by acting as "Jacks of all trades".
- We keep it stupid simple. We aim to buy properties at cents on the dollar that are professionally managed and paying high cash flow. This is not rocket science.
In other words, we are fishing in a pond that we expect to generate higher returns with lesser risk over long stretches of time. In order to make this more than just a statement, we invest a large portion of our personal net worth according to the opportunities presented on the platform.
The Subscription Includes:
- Access to our proprietary high-yield portfolio named the "High Yield Property Opportunity" (HYPO) Portfolio: targets maximum returns with +8% on-going yield.
- Google sheets with rich selection of lower risk securities and more aggressive dividend boosters with yields ranging from 5% to 20% to carter different risk profiles and return objectives.
- In-depth research of all our highest-conviction investments.
- Frequent market commentaries and macroeconomic analysis by Rida Morwa
- Prompt and detailed reply to subscribers' questions.
- 24/7 "Live" Chat where members can ask me questions and get help from other members.
About Me And My Partner, Rida Morwa
I have always been in real estate. From the day I moved to France with my family due to my father's real estate ventures to going on construction sites along with him as a teenager to eventually working in the private equity real estate investment world in Dallas, TX and performing property acquisition in Germany. Today, I am the President of a small boutique investment research firm specializing in mispriced real estate securities often trading at discounts to NAV and excessive yields. In addition to being a CFA Level III candidate, I hold a B.Sc. in Real Estate Finance from University Nürtingen-Geislingen (Germany) and a B.Sc. Construction and Property Management from University of South Wales (UK). I have authored award-winning academical papers on REIT investing, been featured on numerous financial media outlets, and built relationships with many top REIT executives.
Rida Morwa, my partner in this project, is a former Investment and Commercial Banker with over 30 years experience in the field. He has been advising both individuals and institutional clients on high-yield investment strategies since 1991. In addition to being a former Certified Public Accountant ("CPA") from the State of Arizona, Rida holds a BS Degree from Indiana University, Bloomington, and a Masters from Thunderbird School of Global Management (Arizona).
By launching "High Yield Landlord", we seek to make our high-yield portfolio approach available to the masses. There is only so much we can do in public articles. On High Yield Landlord, we are able to go much further by giving members direct access to our personal portfolio and allowing them to emulate our trading in real time.
Big Yield, Deep Discount, Significant Upside
There exists many different "high yield" strategies to pick from… We believe to have developed a superior one allowing us to benefit from high income along with long-term capital appreciation and lower fundamental risk.
Our portfolio holds today many positions trading at their lowest valuations in years. We consider these to be massively undervalued by the market and expect significant upside to materialize in the next years, in addition to the generous +8% dividend yield. With the majority of the marketplace starting to look expensive, our portfolio appears to be particularly well positioned for 2018 and beyond.
Legacy Rate For First 100 Members ONLY
We are offering a legacy rate of just $49/month or $399/year to the first 100 members only (20% discount). This offer expires August 31st. The price will never be this low again. Join the growing community of Landlords and start generating high dividends from passive property investments TODAY. Click here for more information.
Please feel free to ask any questions in the comment section or via direct message. We will happy to assist you.
Jussi Askola & Rida Morwa
This article was written by
High Yield Landlord
Become a “Passive Landlord” with our 8% Yielding Real Estate Portfolio.
Jussi Askola is a former private equity real estate investor with experience working for a +$250 million investment firm in Dallas, Texas; and performing property acquisition in Germany. Today, he is the author of "High Yield Landlord” - the #1 ranked real estate service on Seeking Alpha. Join us for a 2-week free trial and get access to all my highest conviction investment ideas. Click here to learn more!
Jussi is also the President of Leonberg Capital - a value-oriented investment boutique specializing in mispriced real estate securities often trading at high discounts to NAV and excessive yields. In addition to having passed all CFA exams, Jussi holds a BSc in Real Estate Finance from University Nürtingen-Geislingen (Germany) and a BSc in Property Management from University of South Wales (UK). He has authored award-winning academic papers on REIT investing, been featured on numerous financial media outlets, has over 50,000 followers on SeekingAlpha, and built relationships with many top REIT executives.
DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. The information in his articles and his comments on SeekingAlpha.com or elsewhere is provided for information purposes only. Do your own research or seek the advice of a qualified professional. You are responsible for your own investment decisions. High Yield Landlord is managed by Leonberg Capital.
Disclosure: I am/we are long ALL STOCKS IN HYPO PORTFOLIO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
What is High Yield landlord? ›
α High Yield Landlord is a specialized newsletter dedicated to REIT investing. It covers the entire REIT sector and provides access to our recommendations, model portfolios, and REIT market data. Today, High Yield Landlord is one of the largest REIT newsletters in the world.How do beginners invest in REITs? ›
Investing in REITs: How to get started
Getting started is as simple as opening a brokerage account, which usually takes just a few minutes. Then you'll be able to buy and sell publicly traded REITs just as you would any other stock.
When you're ready to invest in a REIT, look for growth in earnings, which stems from higher revenues (higher occupancy rates and increasing rents), lower costs, and new business opportunities. It's also imperative that you research the management team that oversees the REIT's properties.How much do I need to invest in REITs? ›
Although anyone may invest, public non-traded REITs typically have a minimum investment requirement of $1,000 to $2,500.What is a good monthly rental yield? ›
Rental yield is the percentage return you'll get on your investment into the property. A low yield means you won't make a great return (and your money is better spent elsewhere), while a higher yield above 6% suggests a good investment.Is 7% rental yield good? ›
As a rule of thumb, between 6% and 8% is considered to be a reasonable level of rental yield, but different parts of the country can deliver significantly higher or lower returns.What REIT pays the highest dividend? ›
- Chimera Investment Corporation (NYSE: CIM) - Dividend Yield 16.45% ...
- Annaly Capital Management, Inc. ( ...
- New York Mortgage Trust, Inc. ( ...
- Ellington Financial Inc. ( ...
- Necessity Retail REIT Inc (NASDAQ: RTL) - Dividend Yield 13.11%
Real Estate Investment Trusts (REITs) are typically easy to buy and sell because most of them are traded on public exchanges. REITs strive to provide high dividends and offer the potential for long-term appreciation, making them attractive to real estate investors.Is it hard to get out of a REIT? ›
Getting out of a non-traded real estate investment trust, or REIT, can often be rather difficult and expensive. Once a REIT is closed to new investors, the board of directors of the REIT can suspend the redemption policy.What is considered a high-yield property? ›
A low rental yield, say between 2-4%, can suggest that the property may be overvalued. On the other hand, a property with a high rental yield (e.g. 8-10%) could imply that it is undervalued or below market value.
What does high-yield mean in real estate? ›
Generally speaking, the higher the rental yield, the better the investment may be, because the property is generating more revenue and income on both a gross and net basis.What is a good yield for a rental property? ›
After all additional costs have been accounted for, a good net rental yield should be between 5% to 8%. A rental yield of this figure ensures the investor is still making a significant return on their investment, even after mortgage payments, taxes, and more.What is landlord yield? ›
What exactly is rental yield? Rental yield is the financial return you can achieve on a rental property. You can calculate this by dividing your annual rental income by the total value of the property, including the initial purchase and any improvements that you have made or need to carry out in the future.