TRAPPER BREAKS DOWN BUYING "R.E.I.T'S" AND HOW TO IDENTIFY GOOD ONES

what's good Travis it's your boy to Wall Street trap y'all know my goal is to help the culture build up once at a time right now I want to talk about a topic that's not really talked about the investing world too much but it should be REITs Real Estate Investment Trust REITs now when I talk to people about REITs um I often talk to him about from the component of being able to own real estate without being an actual landlord being able to buy real estate from the stock market that's right so a lot of these companies that we love a lot of these companies all of these companies that we love all these companies that we want to invest in all have real estate right we understand we understand that real estate is one of the biggest components in the world listen it's a driver well as the Wall Street Trapper I love stocks and real estate is my next favorite uh asset class but I like to buy real estate through the stock market that's right so let's just talk about that for a second like so one of the reasons why we love reach one of our REITs are so great for us as investors why trap because Real Estate Investment Trust or REITs are obligated to pay us 90 percent of their profits that's right 90 I like to call it flipping bricks on Wall Street right so we think about Amazon if we think about a Walmart we think about a Home Depot we think about a Planet Fitness right these places aren't in the real estate business so what do they do they go to a company and they say hey we need you all to buy this we need to buy a building from you all we need you all to construct a building for us so that we can operate out of it and the people say okay cool I don't have a problem with that how big you need it 2 000 feet by two thousand feet they say cool we can do that but it's gonna cost you and so Amazon like how much you're gonna cost me to say well listen on top of what you're going to pay us to do this we're going to pay us a lease you're going to lease it from us right you're going to lease it from us for 10 to 15 years right and so Amazon says all right cool I'll leave it from you for 10 or 15 years that's that's a no-brainer Walmart says I'm gonna lose it from from you from 10 or 15 years that's a no-brainer Home Depot it says I'm a lease it from you for 10 or 15 years it's a no-brainer right and so what they do is they construct a building and then Amazon Walmart uh whoever Home Depot says okay we'll lease it from you and then the leaser says the reach says listen I'm just giving you the building you got to pay all the bills that's called triple net lease that's right I'm gonna give you the building but you got to pay all the bills you got to put your products and services in there so REITs are great for us because we like cash flow one of the REITs that I love is the telephone reach right so you can have a American Tower or you can have CCI actually own CC I think it's a great read to own right so you think about it right every telephone company has to have what a tower without a tower you can't operate well American Tower and CCI crown castle these companies what they do is they construct the tower and they rent the space now here's what they got real good at it that's what I really like they got real creative they got real real real nice they started renting multiple spaces on the tower to different people so they actually now I'm using the one Tower as like a multi-unit or like an apartment complex right so before it was a single home like you just have to read and one person owned it one person can rent from it they opened it up so now one Tower can have a TNT Sprint T-Mobile and Verizon on it all at one time huh and let me ask you a question do you see us not using phones anytime soon the phone has now become a daily part an intricate part to everybody's life now so walking computer you'll probably be looking at this video off your phone probably 7 out of 10 of y'all so my thing is why not own the company who your phone service is dependent upon and that company now especially with American Tower or crown castle they've been paying dividends consistently for 10 years or better I mean if any company can pay you consistent dividends for that long I mean it's quite interesting another one that I like is uh it's called tick assemble c-o-l-d code now why I like them is because they have the only Reit that deals with Refrigeration that's right so you think about packaged meat and you think about freezers in these restaurants they build them so you go to a restaurant and they got a freezer and uh it's a good chance that this company has done it when you think about meats that have to be stored at these real cold temperatures it's a good chance they've done it one of the things that interested me about them was when a pandemic first happened I saw that thermal fissure and all of these other people who were creating these vaccines they needed to be in really cold temperatures a c-o-l-d wanted to get some contracts for that why because they're known for having storages cold storages and that's what they specialize in cold storages so I like to find when I look for reads I like to find reefs that have a specific Niche right unlike like just having apartment buildings Ah that's cool right I like the specific niche in the reach because they get long-term clientele and one of the things we look at when we look in their retails what that clientele look like huh are you trapping for real do you have customer loyalty wanted another one I like is digital Realty this is a company that's based out as a data center right and so trap like what the hell is the data center I don't know what the hell that is bro so think about this that same phone that you use the same same computer that you use that's data that data has to be stored somewhere we get on Amazon and they ask you they're actually tracking you that data has to be stored somewhere you know Netflix and they ask for your subscription that data has to be stored somewhere when you get on Facebook and they know all of your information that data has to be stored somewhere when you get on Google and YouTube and all of these different search engines that data has to be stored somewhere digital reality DLR it's a company I love I've owned it for quite some time right now maybe a few years I actually broke the business down in my travels anonymous group now too long ago why do I love this business because they are one of the top largest players in that industry right and what I do know is as we continue to move forward in the future what do I know is going to increase the use of Technology the more technology we use the more data we need to be saved definitely love data here's a hack though speaking of the word hack I know you're talking about REITs but now that we're talking about data centers here's the ETF that I love it's called hack cyber security if you need data centers you also need cyber security this ETF h-a-c-k is a great ETF because it allows us to invest in companies that also do what have cyber security cyber security coincides with data centers why do we need cyber security trap because we're more into technology listen investing is about understanding what's ahead of us right I know people be like get into the Coca-Cola's and get into this those companies are real cool but when we're looking for growth the best way to find growth is to understand what's ahead I often say this growth companies represent the solution Blue Chip companies represent the remedy will you try out what does that mean so you haven't went you ever you ever had like a cut or something or you got sick or something and your parent your grandmother somebody said you I got a remedy for that right you ever hear about the old remedies that your people use right but those remedies have been around for a long time right and so it's like Old Faithful but the solution the solution answers a problem that's happening right now I like those Solutions and so in the solutions we'll see so much growth right so you see Elon Musk and Tesla that's a solution when you see uh Google and YouTube that's a solution when you see streaming services that's a solution when we think about anything that is solving a problem right now those Solutions are what we see the group at in the market so as great investors one of the things we have to look for is where's the solution find a solution you find a company that can pay you for a long time the mindset of an investor says this how do I turn a one-time transaction into a lifetime of cash flow how do I sign a one-time transaction so if I buy some Nikes I bought them that one time that's a one-time transaction if I own Nike it has now became a lifetime of cash flow if I buy something from Amazon that becomes a one-time transaction even I keep going back every time I go back there's a one-time transaction if I own Amazon it becomes a lifetime of cash flow all right tribe I hear what you're saying right my credit is pretty decent in the 700s I think that's pretty fair um where do I start what's the smart investment you named a lot of things reads digital hack where do I start oh man that's a great question so one of the great places to start is I like to say that all investors especially if you're new to the game there's two ways you can get into the game one is by trying to own what you already consume right and owning what you consume is if you got an iPhone or if you use Verizon or if you're wearing Nikes which you have those on right now those are great places to start I think what happens to the beginning we try to get it right I want to buy the best stock in the beginning like that don't happen it's okay it's why you had to have skin in the game the next way I like to tell people to start is start with ETFs electronic exchange trading funds right and those ETS gives us a collection of stocks at once we talked about Hack That is the collection of cyber cyber security stocks and one and it operates like a stock so I think the best place to start is with blue chip stocks or stocks that you already own companies that you're already using or go with ETS it's a safe play it's a risk averse play especially for new investors right and that's great I'm glad you asked me that because no matter how much I teach no matter how much I pour out there every day there's someone else getting into the game like trap what do I start the easiest place to start is what you already own which you already consume or you already like to spend time or you already like to spend money and where you work those are easy places to start man I'm glad you asked that question man it's your boy to Wall Street traveler and y'all know my goal is to help the culture build well one show at a time man trap with me

Channel: Wallstreet Trapper

Views: 74,948

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Id: rk4qk9LUhZE

Length: 11min 51sec (711 seconds)

Published: Sun Sep 05 2021