For investors seeking winning stocks, these four real estate stocks might just fit the bill. In this clip from "Ask Us Anything" on Motley Fool Live, recorded on May 31, Motley Fool contributor Tyler Crowe highlights four worthwhile real estate stocks that investors should have on their radar, along with an ETF alternative for investors who prefer broader exposure.
Tyler Crowe: Both Dream Finders (DFH 1.88%) and NVR (NVR 0.03%) have this thing where they, instead of actually owning land, they option their lands. It significantly reduces the downside and it was something that, coming out of the recession, everyone was really hard on. For the most part, most homebuilders have transitioned to some hybrid model of owned versus option lots as a way to protect from the downside. They still have that. Everyone vaulted lower book value on everything. It makes them look better. I don't know if it's as much of a competitive advantage as it used to be, it's still good. But again, just not as great. Personally, I'm invested in a couple of other homebuilders, specifically, LGI Homes (LGIH 0.81%) and Green Brick (GRBK 0.69%), other than NVR. Dream Finders, that's just my personal opinion, I don't think you could go wrong with Dream Finders or NVR in any way. Then REITs, I don't know, I've got like 30 of them. If you are looking to get exposure to it, but you haven't really studied the REIT environment, I would suggest the ETF VNQ, Vanguard Real Estate Index Fund (VNQ 0.87%). It's going to give you a relatively good, broad exposure to REITs while you learn about the industry and forces your hand into doing it. That was actually the way that I got started in REITs. Getting exposure with the ETF and then digging into the individual companies before we got any further.