Diversifying with REITs - buy a prison :)

[satsmainman]

Although i have come across an idea like this but frankly i have never gotten to get the picture so clear like i did from this thread, well its sounds like something to consider but then again i fear there will be barriers. I fear this cannot be accessible from everywhere especially from African countries that are really underdeveloped.

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[GeorgeJohn]

Again, a post about an alternative investment, for those who want to have something apart from their bag of bitcoin. If you have considered investing outside the cryptosphere, you probably thought about buying real state and, unless you have quite a bit of assets or you live in a country that is cheap, you probably figured out that it requires significant investment (technically this is called "barrier to entry").

Well, there is a simple way to invest in real state and this is called a REIT, basically funds that invest in real state and usually give a large share of any rent profit as dividends (by law). The amazing thing about these is that you are not limited to one region or country and you can invest in a variety of real state assets, for example:

For anything relating to real estate management involves capital, and it's obvious that finance is the engine block of investment irrespective the way you plan for it, many people have the intention to establish for real estate but the problem is the finance to start up with, investment is investment but the problem is how to grab the money.

[jaysabi]

I like real estate as an asset class, and I have a lot of REIT investments because of the tax advantages of owning them. That said, I can't think of a more morally objectionable real estate class than prison REITs.  Private prisons shouldn't even be a thing.  Data centers are a growing and much more palatable REIT investment in my book.

It is objectionable indeed but then again the whole Government and the centralized system is corrupted and objectionable itself.

It’s a government’s job to police and run the penal system. It’s too important to delegate to a company whose main incentive is profit. We already know that private prison companies lobby for more restrictive laws because it increases inmates and and therefore profit. The only consideration when crafting laws should be what is good for society, not prison profits.

[Obito]

Prisons rely on state subsidies for survival. Which could make them a less attractive investment as deficits rise and taxes are hiked to continue their existence. Based on the notion of spending and taxing ones way out of deficit and debt being fundamentally imperfect.

Maybe the Prisons supported by REITs are the private ones, not to mention that the progress when it comrs to prisons is really slow in countries. The real estate prices of this places though, I think that if the government were to put some effort in improving it will be helpfulfor the prison and the REIT itself.

[Betwrong]

I like real estate as an asset class, and I have a lot of REIT investments because of the tax advantages of owning them. That said, I can't think of a more morally objectionable real estate class than prison REITs.  Private prisons shouldn't even be a thing.  Data centers are a growing and much more palatable REIT investment in my book.

It is objectionable indeed but then again the whole Government and the centralized system is corrupted and objectionable itself.

It’s a government’s job to police and run the penal system. It’s too important to delegate to a company whose main incentive is profit. We already know that private prison companies lobby for more restrictive laws because it increases inmates and and therefore profit. The only consideration when crafting laws should be what is good for society, not prison profits.

This is a horrible situation, which is definitely bad for regular citizens. However, there's a solution: government should pay the private prisons owners not for the number of inmates, but for the number of places that can be potentially occupied. ... I still think that private companies can provide better conditions for the inmates, if selected through tenders.

[Hydrogen]

Maybe the Prisons supported by REITs are the private ones, not to mention that the progress when it comrs to prisons is really slow in countries. The real estate prices of this places though, I think that if the government were to put some effort in improving it will be helpfulfor the prison and the REIT itself.

Private prisons are usually funded through state subsidies. Its one sector where free markets and capitalism could inflate the overall cost of something. Rather than driving costs down as libertarians might claim occurs everywhere free markets are to be found.

There was a recent story in the news where cost per inmate statistics in new york hit a record high of $500,000. It could imply the for profit prison industry is reaping record profits in some regions. Although there is a question of long term sustainability. States like new york and california are experiencing an exodus of residents moving to other states. Migration trends dilute tax revenues which could leave them even further in debt.

Casinos by contrast could have better long term viability due to their business model and user bases being more reliable.

[yhiaali3]

I do not think that this option would be good, at least for me in my country, real estate is very expensive and it needs thousands of dollars to be able to invest in this type, I mean that the barriers to entry are very high while investing in bitcoin and cryptocurrencies is much cheaper as you can start with small amounts that can be It can reach up to 1000$, so for me investing in cryptocurrencies is much better because it needs small capital and large profit returns compared to the capital.
Of course, the investments you talked about might be very profitable, but they are not successful for anyone and they cannot work in all countries.

[Betwrong]

I do not think that this option would be good, at least for me in my country, real estate is very expensive and it needs thousands of dollars to be able to invest in this type, I mean that the barriers to entry are very high while investing in bitcoin and cryptocurrencies is much cheaper as you can start with small amounts that can be It can reach up to 1000$, so for me investing in cryptocurrencies is much better because it needs small capital and large profit returns compared to the capital.
Of course, the investments you talked about might be very profitable, but they are not successful for anyone and they cannot work in all countries.

OP is talking about having "something apart from their bag of bitcoin", it's about diversifying. If you are an investor, it's always better for you to not bet on one horse only, you should diversify your investments. Also, you don't necessarily need to buy a real estate property by yourself, you can buy a REIT share for $10, and thus become an investor with little money spent.

[avikz]

I wouldn't say that I didn't hear about REITs but never got to know about a real REIT company which can be entrusted with my money. If someone can redirect me to a proper REIT company (a genuine one) then I would try that route as well.

However, there are many HYIPs are running into the market in the disguise of real estate investment. So it is really difficult to find a genuine. Also do they accept investment from any country of the world? Or do they have any special requirement?

[awik p]

I do not think that this option would be good, at least for me in my country, real estate is very expensive and it needs thousands of dollars to be able to invest in this type, I mean that the barriers to entry are very high while investing in bitcoin and cryptocurrencies is much cheaper as you can start with small amounts that can be It can reach up to 1000$, so for me investing in cryptocurrencies is much better because it needs small capital and large profit returns compared to the capital.
Of course, the investments you talked about might be very profitable, but they are not successful for anyone and they cannot work in all countries.

OP is talking about having "something apart from their bag of bitcoin", it's about diversifying. If you are an investor, it's always better for you to not bet on one horse only, you should diversify your investments. Also, you don't necessarily need to buy a real estate property by yourself, you can buy a REIT share for $10, and thus become an investor with little money spent.

diversification is necessary. this aims to minimize risk. even diversification in different areas can further secure our assets from bankruptcy. This is already being done by many entrepreneurs, and I personally just want to copy in their footsteps

[Lorence.xD]

I wouldn't say that I didn't hear about REITs but never got to know about a real REIT company which can be entrusted with my money. If someone can redirect me to a proper REIT company (a genuine one) then I would try that route as well.

However, there are many HYIPs are running into the market in the disguise of real estate investment. So it is really difficult to find a genuine. Also do they accept investment from any country of the world? Or do they have any special requirement?

There might be some investment firms in your country that might be able to redirect you to someone that offers REIT, I wanted to get in to REIT too but I still have a lot of priorities to do and save enough money to get a decent return when I finally invest in it.