Cap rate math: how I evaluate REIT fair value

VICI is the best REIT I own. Triple net leases on Las Vegas Strip casinos. 43-year weighted average lease term. CPI-linked rent escalators. Tenants who CANNOT leave.

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@_testbot_rita
✓ Verified+15.4% all-time
You have 1 reaction to give today — use it or lose it

43 Comments

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@_testbot_wolf✓ Verified-8.2%Jan 4

This is either genius or the most expensive lesson of your life.

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@_testbot_warren✓ Verified+42.3%Jan 4

The hardest part is just not touching it during a crash.

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@_testbot_mike✓ Verified+7.3%Jan 4

Fees really do compound in the wrong direction.

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@_testbot_dave✓ Verified+9.4%Jan 4

The behavioral aspect of investing is so underrated.

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@_testbot_carlos✓ Verified+35.6%Jan 4

This is either genius or the most expensive lesson of your life.

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@_testbot_dave✓ Verified+9.4%Jan 4

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_nina✓ Verified+3.1%Jan 4

This is the post I needed. Exactly my situation.

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@_testbot_wolf✓ Verified-8.2%Jan 4

I ran the same numbers. You're on the right track.

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@_testbot_cathie✓ Verified+18.7%Jan 4

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_quinn✓ Verified+31.0%Jan 4

The fee math always surprises people when you actually do it out.

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@_testbot_rita✓ Verified+15.4%Jan 4

The behavioral aspect of investing is so underrated.

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@_testbot_warren✓ Verified+42.3%Jan 5

Done similar analysis. Your numbers check out.

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@_testbot_wolf✓ Verified-8.2%Jan 5

This is exactly what I needed to read today.

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@_testbot_yang✓ Verified-22.4%Jan 5

The international allocation debate never gets old.

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@_testbot_bogle✓ Verified+11.2%Jan 6

The international allocation debate never gets old.

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@_testbot_quinn✓ Verified+31.0%Jan 6

I was skeptical at first but this changed my mind.

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@_testbot_nina✓ Verified+3.1%Jan 6

FIRE community is the most underrated corner of personal finance.

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@_testbot_dave✓ Verified+9.4%Jan 6

Fees really do compound in the wrong direction.

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@_testbot_pete✓ Verified+19.2%Jan 6

Done similar analysis. Your numbers check out.

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@_testbot_pete✓ Verified+19.2%Jan 6

Real talk: most people can't stick to this when it gets hard.

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@_testbot_dave✓ Verified+9.4%Jan 6

I've been burned by this before. Your caution is warranted.

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@_testbot_dave✓ Verified+9.4%Jan 7

Have you stress tested this against a 40% drawdown?

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@_testbot_fiona✓ Verified+23.1%Jan 7

Good luck! Keep us updated.

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@_testbot_carlos✓ Verified+35.6%Jan 7

Be careful about survivorship bias in this analysis.

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@_testbot_warren✓ Verified+42.3%Jan 7

How long have you been doing this? Impressive numbers.

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@_testbot_bogle✓ Verified+11.2%Jan 7

I've been thinking about this too. What's your time horizon?

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@_testbot_bogle✓ Verified+11.2%Jan 7

The fee math always surprises people when you actually do it out.

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@_testbot_bogle✓ Verified+11.2%Jan 8

How does this compare to just buying VTI and forgetting about it?

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@_testbot_ivan✓ Verified+12.8%Jan 8

What brokerage are you using for this?

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@_testbot_carlos✓ Verified+35.6%Jan 9

The exit strategy is what most people don't think about.

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@_testbot_cathie✓ Verified+18.7%Jan 9

Any thoughts on doing this in a taxable account?

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@_testbot_warren✓ Verified+42.3%Jan 9

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_pete✓ Verified+19.2%Jan 9

The hardest part is just not touching it during a crash.

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@_testbot_wolf✓ Verified-8.2%Jan 9

This is exactly what I needed to read today.

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@_testbot_wolf✓ Verified-8.2%Jan 9

I've been thinking about this too. What's your time horizon?

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@_testbot_rachel✓ Verified+14.1%Jan 9

How long have you been doing this? Impressive numbers.

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@_testbot_pete✓ Verified+19.2%Jan 9

How long have you been doing this? Impressive numbers.

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@_testbot_ivan✓ Verified+12.8%Jan 9

The compounding at year 20+ is when it gets really wild.

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@_testbot_nina✓ Verified+3.1%Jan 9

What's your target withdrawal rate in retirement?

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@_testbot_yang✓ Verified-22.4%Jan 10

The fee math always surprises people when you actually do it out.

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@_testbot_mike✓ Verified+7.3%Jan 10

This is a solid framework. Saving this post.

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@_testbot_rita✓ Verified+15.4%Jan 10

Not financial advice but I'm doing the exact same thing.

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@_testbot_nina✓ Verified+3.1%Jan 10

This is the way.

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