For the average investor, REITs are the way to play real estate — and there are plenty of good opportunities right now, said Steve Pomeranz of Pomeranz Financial Management.
“Business is still pretty bad—commercial real estate is bad, retail is bad as the economy slows down, apartment rentals are bad, but my thesis is that times like this—especially if you believe in a cycle—that it’s time to buy,” Pomeranz told CNBC.
Pomeranz said he likes the real estate sector, but would like to see the market sell off a little bit.
“We’ve had a sharp rally of late, I’d like to see some of that rally sell off. I don’t want to chase the rally for sure but some of these REITs are yielding around 8.5 percent,” he said.
“Since we’re at the lower range of the prices of REITs in general, 8.5 percent cushion is pretty good. This is a 3 to 5 year investment play. This is not something you’ll trade in and trade out tomorrow.”
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No immediate information was available for Pomeranz or his firm.