Looking to start investing in real estate? Millionacres is a real estate investing platform from The Motley Fool. It currently offers two services: Real Estate Winners and Mogul.
Real Estate Winners is a newsletter that focuses on REITs and real estate stocks. Mogul is a premium service that highlights commercial real estate investing opportunities and offers personalized consultations and tax advice.
In our Millionacres review, we’ll take a closer look at Real Estate Winners and help you decide if this service is right for you.
Millionacres Pricing Options
The Motley Fool Millionacres Real Estate Winners newsletter costs $249 per year. Mogul, which is a personalized service with more in-depth support from The Motley Fool’s investing team, costs $2,999 per year.
Motley Fool Millionacres Investing Style
The Millionacres Real Estate Winners newsletter is designed to help you invest in REITs and real estate stocks. The newsletter covers all types of real estate, including industrial, retail, hospitality, and residential properties. The portfolio launched in September 2020 with recommendations including AvalonBay Communities, Life Storage, and Physicians Realty Trust. More recent recommendations have included companies like Airbnb and Invitation Homes.
Real Estate Winners launched at just the right moment – the residential housing market in particular was red-hot in 2021 – but the portfolio hasn’t sold off any picks just yet. All stocks and REITs that Real Estate Winners recommends are intended to be held for at least 3 years, and possibly longer.
It’s worth noting that while many Real Estate Winners picks pay dividends, the investment goal is to maximize returns. Dividend payments are a part of that, but the service doesn’t specifically help you build a portfolio for fixed income.
The Motley Fool Millionacres Real Estate Winners portfolio began with 10 REITs and stocks, and has added one additional holding every month since then. Subscribers are alerted to new recommendations by email, and each pick is accompanied by a straightforward explanation of why the analysts behind Real Estate Winners think the company is worth buying.
Notably, Millionacres Real Estate Winners also offers updates on holdings in the portfolio when there’s important news. For example, after Zillow announced that it was shutting down its iBuying program – a program that played a big role in Real Estate Winners recommending the stock in the first place – the service issued a detailed update and switched the stock to ‘Hold’ rather than leaving it as an active recommendation.
Top 10 List
Millionacres Real Estate Winners rates all stocks in the portfolio as potential buys unless noted otherwise. But to help investors decide where to invest new money, the service highlights the 10 most timely investments that are already in the portfolio. This top 10 list is updated quarterly and includes a paragraph about why each company is being recommended at the time the list is issued.
The Motley Fool Millionacres Real Estate Winners also includes access to additional research beyond the monthly picks. If the analyst team finds a stock or REIT that they think is interesting, but aren’t quite ready to recommend, they’ll issue a watchlist article explaining the pros and cons of the company. The analyst team also releases short video interviews with real estate executives and discussions about trends in the real estate market.
Millionacres Historical Performance
Since launching in September 2020, the portfolio has returned 38.65%. That handily beats the 25.68% return of the Dow Jones US Real Estate Index and the 12.97% return of the S&P 500 over the same period. All of the 10 stocks and REITs that were included in the initial Millionacres Real Estate Winners portfolio have returned a profit, although two newer picks have lost more than 30% of their value.
The Motley Fool Millionacres Real Estate Winners portfolio launched just in time to catch a historic run in the real estate market, so it’s unlikely the service can deliver these outstanding returns year after year. What’s more important is whether the newsletter’s picks can outperform the US Real Estate Index once the real estate market cools off.
How Does Millionacres Compare to Other Services?
The Motley Fool Millionacres Real Estate Winners is unique among stock picking newsletters from The Motley Fool – which is best known for its flagship newsletter, Stock Advisor – in its focus on real estate stocks and REITs. The monthly cadence of new recommendations will be familiar if you’ve tried other newsletters from The Motley Fool, though.
There are a handful of other REIT-focused investing newsletters that compete with Real Estate Winners. For example, there’s iREIT on Alpha from Seeking Alpha ($519 per year) and Forbes Real Estate Investor ($99 per year). IREIT is a more hands-on service than Real Estate Winners, requiring you to use the research provided to make your own investment decisions. Forbes Real Estate Investor is very similar to Real Estate Winners, offering model portfolios and monthly recommendations, but it doesn’t offer details on the portfolio’s historical performance.
What Type of Investor is Motley Fool Millionacres Best For?
The Real Estate Winners newsletter from The Motley Fool Millionacres is ideal for long-term investors who want to invest in real estate. It’s a great option for diversifying a portfolio into real estate while still being able to use your broker and any equity research tools you already have. The monthly recommendations and top 10 list are straightforward, so you don’t need to know much about real estate to get started with Real Estate Winners.
- Requires very little real estate investing knowledge
- Monthly recommendations
- Top 10 list to find REITs and stocks to invest in every quarter
- Research articles covering stocks and REITs to watch
- Outpaced the US Real Estate Index in its first year
- Performance has not been tested in a “normal” real estate market
- Doesn’t focus on income investing with real estate