mREITs

[hendi_alex]

I would pick a BDC over an mREIT, though would pick neither in front of possible rate increases. At lease BDC's hold leverage down to 1X. MREITs can leverage up to 10X. At 10X leverage it only takes a heartbeat to burn through equity during adverse conditions. MREITs are even more vulnerable than levered banks because the REIT structure prevents them from accumulating any reserve funds, as 90% of profit mustbe distributed to shareholders. With REITs there is no such thing as a rainy day fund.