You probably know who Jeff Bezos is. He’s the founder of Amazon.com.
And with a net worth of $188 billion, he’s the richest man in the world.
The thing is, we’ve found a way to take some cash out of his bank account...
And put it into yours!
“Hey Jeff, How About Some Income?”
Amazon stock has exploded over the past 20 years.
In fact, if you’d invested in it in 2000, your stake would have soared by more than 20x.
But despite Amazon’s success, it’s never paid a dividend…
And it doesn’t seem like it has any intention of paying one in the future.
So if your goal is to generate consistent income, investing in Amazon would make no sense.
But we recently discovered a way for investors like you to leverage Amazon’s success to earn significant cash flow every single month.
Let me explain…
Amazon Expands Dramatically
Because of the coronavirus, shopping habits have changed.
Instead of going out to the grocery store or Home Depot, people have started ordering everything online, especially from Amazon.
Groceries, toilet paper, gloves, batteries, light bulbs…
You name it, they’re ordering it from Amazon.
And that’s why the company has had to expand its operations so dramatically…
1 Million Employees!
For example, in the past few months alone, CNBC estimates that Amazon hired more than 175,000 new employees.
It now has close to 1 million workers.
Well, just think about all the space Amazon needs to put 1 million people.
And this explains why Amazon has to go shopping right now…
Shopping for real estate!
Specifically, it needs new warehouses and fulfillment centers for its workers.
The thing is, this need could help you earn thousands of dollars in monthly income.
A Recipe for Big Profits
You see, industrial warehouses like the ones Amazon needs can be very good investments.
As Ron She, Managing Director at Duff & Phelps Investment Management Co., has explained, it comes down to supply and demand…
The availability of warehouses is very limited right now, especially near dense urban areas.
Furthermore, obtaining financing for new industrial real estate isn’t as easy as it was before the financial crisis of 2007/2008.
Add in booming e-commerce activity because of the coronavirus…
And you’ve got a perfect storm for the kind of escalating rents and low vacancy rates that can lead investors like us to big profits.
So, now that you know all this… here are four ways to profit from this trend.
Four Ways to Profit from this Trend
Here are four REITs that industry analysts (like Thomas Catherwood from BTIG) expect to soar because of the rise in e-commerce activity, and the need for warehouse space.
Prologis Inc. (PLD)
Prologis has a unique distinction: it’s currently Amazon’s largest landlord.
This real estate manager has nearly $100 billion of assets under management, and a market cap of roughly $75 billion.
Its shares currently trade for about $100, and they yield 2.2%.
Duke Realty (DRE)
Another major player in the market is Duke Realty, which controls a whopping 156 million square feet of U.S. real estate.
Its shares currently trade at $38, and offer a yield of 2.4%.
Terreno Realty (TRNO)
Terreno’s strategy is more targeted. It operates in just six markets, all of which are in dense urban areas.
Shares currently trade for $58, with a yield of about 2%.
Americold Realty Trust (COLD)
Americold is the world's largest owner of refrigerated warehouses. It operates 160 warehouses in the U.S., Canada, Australia, New Zealand and Argentina.
According to She, “cold storage” plays like this offer significant upside, because the market is still fragmented — and thus, there’s potential for a landgrab.
Shares currently trade for $38, with a yield of 2.17%.
So, What’s the Downside?
Each of these REITs is well-positioned to provide critical support for e-commerce giants like Amazon in the future — and is well-positioned to offer investors like us substantial profits.
But before you jump into any of them, you should consider the downside.
In particular:
- Because REITs are publicly-traded, they’re subject to the same volatility as stocks. So if the market crashes, so do your REITs.
- Given their yields of just 2% to 2.5%, earning significant monthly income from them will require a sizable starting stake.
- And lastly, REITs can charge high fees that eat into your profits. So before investing, be sure to review the fees.
But if you’re looking to take advantage of the growth of e-commerce — and looking to make some income courtesy of Jeff Bezos! — give these four REITs a look.
Happy Investing.
Best Regards,
Founder
Crowdability.com
