Real Estate & Oil Royalties for Cash Flow

Real Estate Investment Trusts (REIT’s) pulled back at the end of the year, largely because of institutional selling. If you want a Cash Flow base to build upon consider these: BER, WR Berkley Corporation, ABR, Arbor Realty Trust. This morning Gail Seneca also recommended some REIT’s : here’s the link : MSN Money Central I still hold VLO, but wow is it getting extended! Did you know they buy low grade crude @ $17 a barrel, refine it and sell gasoline-Big margins. I also like PTR, PetroChina, primarily for growth and for a oil royalty trust, how about SJT, San Juan Royalty Trust. A prospect brought me his portfolio a couple of years ago. It was almost exclusively in REIT’s which were throwing off dividends of over $10,000 a month. He had held these positions for years and had been reinvesting the dividends. His cost basis was very low and he loved the Cash Flow. Was he Diversified-NO, but he was happy and knew the REIT market-We made no changes to his portfolio. It worked for him!

Leave a Reply