Buying publicly traded REITS vs RE

[Aaron Holtzman]

Hi all,

Just a clarification, I do intend to ultimately own RE. However, as I am saving up to acquire a property, I have been investing in REITS (NYMT / ABR / NRZ / CIM / NLY / SKT). Right now, these REITS have dividend yields from a low of 8% to a high of 13%. Does anyone else invest in high dividend paying REITS as well?

Also, for a cash on cash return and from a headache perspective, is it potentially better to just buy REITS for the long term and be happy with a 13% div yield (which would be a 13% cash on cash return). I know from a tax, leverage, and appreciation play that RE will beat out REITS....however, by how much? Also, at least with a REIT there are no headaches (be it managing tenants or managing property managers).