Best Real Estate Penny Stocks

Real estate is generally considered a safe investment but buying property can be an expensive ordeal. Real estate investment trusts and real estate penny stocks can help you own a small share in hot commercial and residential properties without burning a hole in your pocket. 

Here's a guide to help you invest in real estate penny stocks that are making headlines in the market. 

Best Real Estate Penny Stocks

Best Real Estate Penny Stocks

Check out the best real estate penny stocks right now below to help you make the most informed investment decisions.

MDJM (NASDAQ:MDJH)

Founded in 2002, MDJM Ltd. is a real estate company based in China. It offers real estate agency services such as marketing and planning to real estate developers. MDJM has an extended clientele including real estate design agencies, urban planning bureau of the government, urban rail transportation companies and urban infrastructure development companies.

MDJH has a market cap of $48 million and trades an average of 29,306 shares daily. The 52-week range is $2.21 to $5.85. The company's 2020 revenues were $6.15 million.

Lument Finance Trust (NYSE:LFT)

Lument Finance Trust Inc operates as a real estate investment trust. The company is engaged in investment, financing, and management of a portfolio of commercial real estate debt investments. It invests in transitional floating-rate commercial mortgage loans, mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed-rate loans, construction loans, and other CRE debt instruments.

Leju Hldgs (NYSE:LEJU)

Leju Holdings Ltd. is a leading real estate service provider. Its real estate services integrate online information with offline promotion and transaction support. It also offers online advertising and listing services through its platform.

Leju has a market cap of $308 million and an EPS of $0.08. It trades more than 48,000 shares per day. Leju generated revenue of $692 million in 2019.

Presidio Property Trust (NASDAQ:SQFT)

Presidio Property Trust Inc. is a real estate company. The company operates as a self-administered real estate investment trust. Presidio Property Trust's portfolio has diverse product type, consisting of office, retail, industrial, self-storage, and residential properties.

New York Mortgage Trust (NASDAQ:NYMT)

Founded in 2003 and headquartered in New York City, New York Mortgage Trust is an internally managed real estate trust that focuses on helping provide stable income and diverse distributions to its investors.

What are Real Estate Penny Stocks?

Real estate penny stocks invest in a wide range of properties such as homes, office buildings, shopping malls, condominiums, apartments, hotels, resorts, storage facilities, mortgages and loans. 

You can earn a share of the income produced by real estate properties without actually owning them by investing in real estate investment trusts (REITs). These REIT stocks are comparatively more volatile and hard to sell due to their lack of liquidity. 

For example, Newmark Group cut its quarterly dividend payout by 90% in Q2 2020. The real estate company went from giving a quarterly yield of 10 cents to 1 cent even though its reported revenue for the quarter was higher by 8.1% compared to Q2 2019. 

Colony Capital Inc. (NYSE: CLNY) wasn't always a penny stock but the recent stock crash dipped its value from $5 to $1.35 in March 2020. After it merged with DigitalBridge Group Inc., the stock rose once again, pulling it from the depths of the penny stock world. In short, these stocks are volatile, and this information is subject to change.

Doing in-depth research on penny stocks from the real estate sector before investing in them can be key to your successful financial future. 

Best Online Brokers for Real Estate Penny Stock

Online brokers give you access to trading tools and educational resources to make informed investment decisions. Most of these online brokers let you trade stocks at a $0 commission rate. You can open an account on these platforms to easily manage your stock portfolio on the go.

Take a look at these top online brokers to help you get started. 

Features to Look for in Real Estate Penny Stock

Investors can choose from several real estate penny stocks. These are some of the key features to look for before buying shares.

Strong Earnings Per Share Growth

Professional stock analysts like zacks.com project earnings per share (EPS) estimates for each quarter to assess the performance of a company. You can check these reports constantly to verify if the stock is beating estimates and growing at a constant pace or if it has underperformed. 

Low Price-to-Earnings Ratio

The price-to-earnings (P/E) ratio is a standard benchmark to compare stocks in the same category. A high P/E ratio can suggest that the real estate stock is overpriced or that the company is expected to increase sales in the coming quarter. 

Massive Real Estate Deals

Real estate penny stocks can make big price movements following the closure of huge property agreements. These agreements can include the construction of commercial and residential properties in prime locations or management services for multimillion-dollar properties. 

Make Room for Your Financial Growth

Real estate stocks can present a diverse set of companies to invest in. From the stock quotes to the locations that they operate in, real estate firms can vary in the value they bring to your portfolio. Depending on your financial needs, you can consider investing in real estate penny stocks to grow your wealth. 

Frequently Asked Questions