Q: Our advisor suggests that we invest in REIT’S. We are unsure. He wants us to invest 30K, We have a total of 270k and own our home.
A: This is very difficult to answer without knowing your entire financial situation including risk tolerance, return expectations, time horizon, etc.
Typically, we would suggest that you understand how this “advisor” is being compensated if/when you invest in a product like this. If he/she is somehow compensated with a commission, you need to ask yourself, if they are advising you with their best interests or yours in mind and whether the commission would affect their objectivity.
REITs are typically fine investments and good diversification opportunities for most investment portfolios, but we would typically suggest investors look at publicly traded REITs that are liquid and regulated more stringently.