Don't you think that it is amazing that after everything that we have gone through over the last 5 years people are still able to delude themselves that it is possible to earn money without risk?
"Agran, the Los Angeles investor, said he generally sees publicly traded real estate as a good investment no matter what the economy does or where inflation goes."
You'd think that statements like: "what else could I do with my money" would carry little weight in an intellectual debate about risk reward. In any case, there is no such thing as a "good investment no matter what". People overpay even for their own education.
How do REITs make money? by using leverage to enhance their returns. Lots of leverage.
You know what other real estate-based investment used leverage to enhance returns? CDOs (aka "those toxic securities the banks own" TARP debate circa 2008).
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