Investors Real Estate Trust is probably one REIT you’ve never heard of because it focuses on a very small niche, owning properties in Minnesota and North Dakota. Because of it’s geographic focus, it may be well situated to benefit from the recent economic boom that has been going on in North Dakota within the oil industry.
Risk / Reward
I tend to favor REITs when looking for companies to add to the DDI portfolio because of the fact that they own hard assets which makes it more difficult (but not impossible) for the book value of the company to fall to $ZERO. To be completely honest, owning this stock is all about yield which is currently right around the 7% mark. Adding these shares will increase the first month quarterly payout by $9.75.
As I’ve mentioned before, because most of my individual positions are less that $1000 in value and since the portfolio is on track to make $500/month (and growing) – I’m comfortable with the risk/reward scenario that investing in these shares offers.
I’ll look to add on to one of my more conservative holdings for my next investment in an effort to balance the overall risk of the DDI portfolio. Overall the DDI portfolio continues to perform as expected, delivering over $500/month in income in both month 1 and month 3.
With the continued downward pressure on share prices I may begin to add additional outside funds so that I can capitalize on depressed share prices when the market offers them to me. Mostly this will be a function of how well or poorly my other income sources perform in the coming weeks and months. Ideally I would like to build the DDI portfolio up to $250k in base value before leaving it on auto-pilot to become a true unmanned cash flow machine!
If so, you might want to check out some of my other recent buys including: