This presentation a part of the series we present at Strategy Sessions. Strategy Sessions are small group (5-10 people) settings where we discuss the core elements of success in selecting a passive income strategy and analyze one or two specific strategies in the Passive Income Handbook. You can have this presentation presented to you online at www.ppis.yapsody.com You can download the Passive Income Handbook at www.ppis.ca Our Youtube Video describes what we do: https://www.youtube.com/watch?v=6mkJ7zIex4o

1. Passive Income Strategies for your
Financial Freedom
INVESTING IN REITs
www.slideshare.net/ppis/

2. Disclaimer
This is a presentation prepared for Education purposes only.
Neither Prosperis Passive Income Strategies (PPIS) nor any of its personnel are
registered broker-dealers or investment advisors. We may mention that we consider
certain securities or positions to be good candidates for the types of strategies we are
discussing or illustrating. Because we consider the securities or positions appropriate to
the discussion or for illustration purposes does not mean that we are telling you to trade
these exact strategies or securities. Keep in mind that we are not providing you with any
specific recommendations or personalized advice about your own trading activities. The
information we are providing is not tailored to any particular individual. Any mention of
a particular security is not a recommendation to buy, sell, or hold that or any other
security, or a suggestion that it is suitable for any specific person. Keep in mind that all
trading ALWAYS involves a risk of loss, even if we are discussing strategies that are
intended to limit risk.
Also PPIS personnel are not subject to trading restrictions. Myself and any others at PPIS
could have a position in a security or initiate a position in a security at any time.

3. Real Estate as an Investment
• People like that real estate is a real asset.
• Generates a very predictable cash flow
• Rents tend to go up at about the same level as inflation
• Value of the real estate usually goes up over time
• Expenses are usually pretty predictable

4. What are Real Estate Investment Trusts?
A REIT is a type of security that invests in real estate
through property or mortgages and often trades on
major exchanges like a stock.
Funds raised by a REIT are used to buy a pool of
properties which are then leased out to produce
rental income that is later distributed to investors as
dividends.
REITs do not pay tax on the distributable income they
pay to investors, but pay tax on the income they keep.

5. Why REIT over owning rental property
The distributions from a REIT are taxed at a better rate than
straight rent received from a rental property.
Professional management at a great price because of economies
of scale
REITs give retail investors access to areas of the market they
normally wouldn’t be able to participate in, like commercial or
industrial property.
A REIT may own hundreds of different properties spread across
North America and even globally.
No down payment needed. Minimum required is based on your
brokerage.

6. Why owning rental property over REIT
• Leverage: It’s possible for an investor to purchase a
rental for as little as 5% down. That kind of debt can
lead to a succulent return on the original invested
capital if done right.
• Control: As a property owner, you make decisions
related to setting of prices, purchases and ongoing
costs. You are more directly involved in decision-
making.
• REITs are traded on the stock market. If the value of the
underlying REITs falls significantly, you may be selling
at a loss.

7. Difference Between Investing and Trading
An investor takes a long-term, passive approach.
A trader takes a more active approach using
various stock and options strategies that tend to
capitalize on shorter-term market movement.

8. The Decision
There are dozens of different REITs that trade on
the TSX, and dozens more that trade on the U.S.
markets.
Which ones should you choose for your portfolio?

9. Factors to Consider
• Distribution levels
• Track record
• Diversification (Geography and Sector)
• Quality of assets
• Management
• Stock price fluctuation

10. Profile of a REIT
• Trades on the TSX. Has fluctuated in price/unit from
C$9.60 – C$11.80 in the last 5 years.
• Owns 100 hotels totaling over 7,000 guest rooms in
the United States.
• It pays a monthly distribution $0.075 per unit, or
$0.90 per unit annually, giving it an 8.4% yield
annually. It has maintained this rate for 5 years.

11. Profile of another REIT
• Trades on the TSX. Has fluctuated in price/share
from $3.75 – $5.25 in the last 5 years.
• Owns 307 retail properties in eight Canadian
provinces totalling 7 million square feet of leasable
area.
• It pays a monthly distribution of $0.0208 per unit, or
$0.25 per unit annually, giving its stock a 5.4% yield
annually. It has raised its annual distribution for 12
consecutive years.

12. How to hold REITs (The PPIS way)
In a self-directed account with an online
brokerage
Can be held in an RRSP, TFSA or Open Account.

13. $16.92

14. $16.92

15. How to invest in REITS –
The PPIS REIT Investing Course
• Two hours
• Using the Questrade Trading Platform
• When to Enter a trade, When to Exit a Trade
• Basic Stock Chart Analysis
How to identify trends (Moving Averages)
How to define a trend (Fibonacci Retracement)
Trend reversal predictions (Japanese Candlesticks)
• Transferable skills to ETF and stock investing.

17. Course offered on November 8, 2016
• $100
BONUSES
• Bring another person for half-price
• Combine with November 22, 2016 at Special Rate
• 10% off full price by registering TODAY
$50 (2016 FRIENDS AND FAMILY RATE)