Federal Rent Checks
So what’s the deal with federal rent checks? Right now, there are a lot of ads and emails going around that you can “collect federal rent checks of up to $7,000 per month.”
Are federal rent checks legit or is this a scam?
You’ve probably received an email that says something like this:
“Dear Reader, right now any American taxpayer can get simple instructions and position themselves to collect federal rent checks of up to $6,945 over time, possibly more.”
Have you received any of these emails or have you seen any of these ads?
In the email, it says, “There is a little-known investment strategy to start collecting yours right here.”
When you click on the link and follow it, it’ll bring you to a website that talks about these federal rent checks and says:
“Please review the following information to see how you could receive $1,795 or more every single month.”
Here’s what you need to know
Let me just give you a brief background on federal rent checks and then we’ll talk about whether this is legit or whether this is a scam, because I believe that you need to know this.
So here’s the story behind Federal Rent Checks:
The government needs office space, right? It doesn’t matter what government it is: whether it’s the FBI, CIA, or the Department of Justice, they all need office space. And these days, they are leasing it.
The government used to own all the buildings, but years ago, in order to spruce up the balance sheet, they sold the buildings because it brought in a lot of money.
And now they are leasing it back.
There are other advantages for the government to lease their own buildings:
It looks better on their balance sheet and in their budgets.
I looked it up and there are actually 9,600 government buildings that they’re renting back.
And when they rent it back, obviously, the government has to pay rent, and this is the premise of these federal rent checks.
So the question now is, how can you benefit from these Federal Rent Checks?
This is where the ad comes into play. The ad is promoting a paid newsletter by a company called Money Map Press.
And that’s their business: Money Map Press is a newsletter provider. They have really clever copywriters. I’ve met some of them. They’re very, very talented.
Money Map Press is selling their newsletters for $47 a year or $99 for two years.
So, do you need to have the newsletter in order to understand what this is all about? – No, you don’t.
Let me help you save money and explain to you what’s behind all this:
These government buildings are in a so-called REIT.
What is it a REIT? – It’s a Real Estate Investment Trust.
In a nutshell, what it means is that a REIT is managing these buildings and by law they need to pass on 95% of their profits to investors. So you can buy shares in a REIT.
An REIT is trading at an exchange like a stock. And this is what makes this concept so intriguing.
We’ll look into this to see if it is worth you doing this.
How do you get federal rent checks?
First of all, the government doesn’t own their own buildings anymore. They have sold them. So, somebody else owns the buildings and this is an REIT.
They are paying rent, and you can get a share – a part of this REIT – by buying it like a stock that pays dividends.
There are two REIT’s that have these government buildings.
And again, this is where the news probably explains it much fancier than I do. But you know me… I like to cut through the bullshit and tell you straight up what it is.
REIT # 1: DEA
At the time of writing this article, DEA is trading at $17.51.
The dividend right now is 5.78%.
And DEA is paying quarterly dividends like any other stock.
REIT #2: OPI
The other REIT that owns these government buildings is called OPI.
OPI is paying 7.21% in dividends.
And here’s the challenge: The investment in this REIT makes 6-7% per year. And now, you might say: “Wow! This is fantastic, right? I’m getting risk-free 6-7% per year.”
No! That’s the fallacy here. It is not a risk-free because these REIT’s can go up and down in price.
Let’s take a look at DEA.
So, even though you’re getting 6% per year, let’s see how this REIT has been performing over the past year.
This has been going down from $22 to $17. So, there is a downside. Like with every stock, you can lose money here.
And OPI is even worse: It used to trade at $90 and is now trading at $27.
Are these Federal Rent Checks legit?
Yes, they are.
However, it’s a clever story to convince you to invest in an REIT that owns office buildings that are being rented by the government.
You can make 6 to 7 percent per year, but as you have seen, there is a huge downside.
For me personally, it is not worth doing it.
My goal is to make 60 to 70 percent per year, not 6 to 7 percent.
And I’m doing it by actively trading stocks.
If you’re interested in learning how I personally do it, please go to www.mytradingroutine.com
There’s a free 35-minute video for you that shows you what exactly I do.
So, now you know what’s behind these federal rent checks, and you can make your own informed decision.
For me personally, I don’t think it’s worth it.
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