Associated Estates Realty Corporation (AEC), The Blackstone Group L.P. (BX): Profit From The ‘Renter Nation’ Phenomenon

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So rather than go through the hassle of physically buying property and renting it out, I’m telling readers of my High-Yield Investing newsletter to become “virtual landlords.”

How do we do this?

Rather than simply buying physical property and renting it out, we can own a basket of appealing properties by investing in real estate investment trusts, or REITs.

As many of you probably know, REITs are a special type of company that own physical assets and collect rent from tenants and then pass that income along to investors (90% as required by law).

And thanks to the real estate boom, a select group of REITs are poised to crush the rest of the market.

For example, I found three companies that control roughly 6% of the off-campus market. One of the companies has been actively buying up complexes, growing its asset base from $500 million in properties in 2005 to $5 billion today. Its revenues are expected to grow 50% this year alone, which should help support its solid 6% dividend yield. Shares have shot up 162% since March of 2009.

Another company I found leases property to the government, collecting 68% of its revenues from federal agencies, 17% from state governments and 2% from the U.N. That’s makes for a 6.5% yield that comes straight from Uncle Sam.

Make no mistake, a growing nation of renters is a giant trend that could benefit investors for the next several years at the very least.

These are just a few examples. I feel so strongly about this phenomenon, my research team and I put together a new report to teach investors how to profit from the “Renter Nation.” The report, How To Become A “Virtual Landlord,” outlines the absolute best ways to profit from this mega-trend. Find all the details here.

– Nathan Slaughter

Nathan Slaughter does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC does not hold positions in any securities mentioned in this article.
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