Looking to invest in real estate but don't have the budget to buy property? Real estate penny stocks may be the solution you're looking for. These stocks, which trade for less than $5 per share, allow you to invest in the real estate sector even with a limited budget. In this article, we'll explore some of the best real estate penny stocks that you should consider for January 2024.
Hot Real Estate Penny Stocks to Buy Now
New York Mortgage Trust (NASDAQ: NYMT)
New York Mortgage Trust is a Real Estate Investment Trust (REIT) with a balanced portfolio of real estate investments. While the trust focuses on residential mortgage loans, it also invests in non-agency and agency RMBS, as well as structured multi-family investments. Despite a dip in stock prices, NYMT offers a high dividend yield and could be well-valued considering its current financials.
Corenergy Infrastructure Trust (NYSE: CORR)
If you're interested in real estate outside of traditional residential or commercial properties, Corenergy Infrastructure Trust is worth considering. This unique REIT focuses on energy infrastructure and currently holds two natural gas pipelines and a midstream pipeline network in California. With a focus on green energy, Corenergy offers potential long-term success in the energy distribution sector.
Best Real Estate Penny Stocks to Buy Now
MDJM Ltd. (NASDAQ: MDJM)
MDJM is a Chinese company that provides real estate marketing and planning services for developers throughout China. With a diverse portfolio of clientele, including government agencies and infrastructure developers, MDJM has multiple sources of revenue. While the Chinese real estate market has slowed down recently, MDJM's diverse portfolio could provide some insulation from the challenges. If you have a high risk tolerance and are interested in the Chinese market, keep an eye on this real estate stock.
China Hgs Real Estate Inc. (NASDAQ: HGSH)
China Hgs Real Estate focuses on residential developments in China's emerging cities and prioritizes sustainability and green developments. While other Chinese real estate stocks have struggled recently, HGSH stock has experienced growth. With significant growth in the second quarter and a low price-to-earnings ratio, this stock shows promise.
Best REIT Penny Stocks
Presidio Property Trust (NASDAQ: SQFT)
Presidio Property Trust is a California-based REIT with commercial real estate properties in multiple states and residential properties in various regions. The company focuses on secondary real estate markets, which have shown slow and steady growth without the challenges of in-demand markets. With dividends over 11%, Presidio Property Trust offers consistent income opportunities.
Lument Finance Trust (NYSE: LFT)
Lument Finance Trust specializes in commercial debt investments, particularly in multi-family assets. With consistent growth and a dividend increase, LFT stock presents a favorable investment opportunity. Analysts expect the third-quarter earnings to exceed expectations, potentially leading to a rise in stock price. Lument Finance Trust remains committed to paying substantial dividends.
Best Mortgage Real Estate Penny Stocks
Invesco Mortgage Capital (NYSE: IVR)
Invesco Mortgage Capital differs from other REITs as it primarily invests in residential and commercial loans backed by the U.S. government. Despite a lackluster third-quarter earnings report, this penny stock offers a high dividend yield and a low price-to-earnings ratio, suggesting potential undervaluation. With significant attention from Reddit investors in the past, IVR stock has the potential for future growth.
Real Estate Penny Stocks Under $1
MetroSpaces Inc. (OTC: MSPC)
MetroSpaces is a Florida-based real estate technology company focused on developing tools using AI and blockchain to improve property transactions, management, and administration. With services like MetroHouse and MetroCrowd, MetroSpaces aims to make property ownership more accessible and provide turnkey rental experiences. Although trading for under $1, this penny stock has recently experienced volatility.
Why Buy Real Estate Stocks?
The real estate market has made a remarkable recovery from the COVID-19 pandemic, making it an excellent time to invest. As people return to the office, both commercial and residential real estate prices are bouncing back. Real estate stocks offer the opportunity to diversify your portfolio and benefit from ongoing growth potential.
What You Should Know About REITs
REITs are a specific type of real estate stock that offer consistently high dividend payments due to regulatory rules. Investing in REITs can provide both ongoing income and returns. However, penny stocks come with unique risks, including low volume and increased volatility. Ensure you have investment experience and can time your investments well to take advantage of the potential gains.
Where to Buy Real Estate Penny Stocks?
For purchasing real estate penny stocks, platforms like Robinhood and Webull are recommended. These platforms offer a comprehensive range of investment options, including REITs. However, if you prefer trading over-the-counter (OTC) penny stocks, you'll need to find a brokerage that allows such investments.
Real Estate Penny Stocks: Final Words
Real estate penny stocks provide diversification and growth opportunities within the industry's ongoing rebound. With strong dividend returns and potential for growth, these stocks offer a compelling investment proposition.
Disclaimer: The information provided in this article is for informational purposes only. Always do thorough research and consult with a financial advisor before making any investment decisions.