REITs – Buy Now, Sell High
With so many people panicking after this past year's investment woes, there are some great deals to be had in the investment world. One of the best ones out there is in the real estate arena.
A lot of people are reluctant to put out any type of money into investments right now, thinking that since it's a bad time, things must be getting ready to get worse and worse. Well in real estate, this is not possible.
Think about this for a minute. Unless it is going to sink into the ocean or completely disappear into a black hole, the property behind a real estate investment will always be around. Sure, it can lose money and have a tough time, but it will be around and still have value.
Another thing to keep in mind is right now, as many other investors are doing what you are doing and worrying, those who move forward and make a buy will be the ones who have the most to gain as the market starts to rise again.
It's like Albert Einstein said, "In the middle of every difficulty lies opportunity". While he may have been talking about science, it also works for the world of economics and investments. Sure we are in the midst of a difficult economic time when it seems every stock, bond and mutual fund has dropped through the floor and that any investment is doomed to fail. But, what if you look at the opportunity side of that. If you look around, the real estate market has bottomed out for the most part. That means the current opportunity is in investing in more of it and seeing a return on that investment.
Now that I have you thinking of opportunity, you may be thinking there is no way you will be able to afford purchasing properties right now. No one said you had to buy properties outright. Instead, why not purchase shares of property? This can be accomplished through real estate investment trusts or REITs. Being a part of a REIT allows you to purchase shares of a real estate development or real estate management company and still be in on the market without having to buy a whole property yourself.
In a REIT when the management group profits (through leases, rent or mortgage interest) at least 90% of that profit must be passed on to the investors. This will come in the form of a dividend. In many cases you will see a 6-10% return on your investment every year, as that is the average. In some years you may even see your real estate out perform the stock market.
Investing in REITs is easy. They are publicly traded and you can go to a website like REITBuyer.com to research the REITs you are interested in, look at their past, possible futures and even make the purchase all in the same place, as they are an investing real estate broker.
We're at a point in the economic tide right now where it's either time to make a move or stay out of the game. Only those who play can win.
Tuesday, March 3, 2009
REITs: Real Estate Investment Trusts are Like Mutual Funds
Real Estate as A Savings Plan
Are you one of those people who love the idea of putting money away to make sure you have it if you need it down the road, but never really gets around to it? Perhaps you have a tough time just leaving the money in the bank and when you see something that looks like it would be nice to have you cave in and make a purchase. Either that or you look at the low interest that is coming in from banks these days and think 'what's the use?' as you're not even making interest that will meet inflation.
If this sounds like you, you may need to look at another way to save your money and a REIT may be the answer. A REIT is a real estate investment trust. This is essentially a mutual fund for real estate that will be used to buy, build or manage real estate ventures.
Those who are in REITs purchase shares, just like you would any stock, mutual funds or commodities on the stock market and allow that money to grow. In this case the growth comes from the lease, rent or mortgage insurance paid to the fund. The average return on REITs is 6-10%, which is triple, or quadruple of what most savings plans will net you in the bank.
Additionally, for the most part, REITs are pretty strong investments. Most of them are based on tangible pieces of property that are not going anywhere, so while values may fluctuate, they will still have some value.
Unlike buying real pieces of property, which means a lot of money, paperwork, and quite the hassle finding a buyer if you want to sell, REITs will allow you to instead sell your shares just like you would any other stock, mutual fund or commodities on the stock market.
If you're smart about this type of investment, you will treat it as a savings plan. As you get the money to purchase shares, make a purchase and then allow your annual dividends to be rolled back into purchase more shares. If you keep making your purchases on a regular time frame and let them grow. You may be surprised at just how much it grows for you to have down the road when you need it.
With the recent down market, there's no time like the present to buy. In the immortal words of multi-millionaire T. Harv. Eker, "Don't wait to buy real estate, buy real estate and wait."
If you have never heard of REITs or worked with them before, don't let that be a deterrent to you. Simply by logging on to a website such as REITBuyer.com you will be able to learn everything you need to know to be investing like a pro in no time and start that savings plan.
If you're completely new to this, begin with the basics. Make your way through the website learning all you need to know about REITs and then choose the ones that are best for you. The best part about REITBuyer.com is that you can then make your purchase on their website, as they are a full service investing real estate broker, and watch your portfolio all in the same place.
Are you one of those people who love the idea of putting money away to make sure you have it if you need it down the road, but never really gets around to it? Perhaps you have a tough time just leaving the money in the bank and when you see something that looks like it would be nice to have you cave in and make a purchase. Either that or you look at the low interest that is coming in from banks these days and think 'what's the use?' as you're not even making interest that will meet inflation.
If this sounds like you, you may need to look at another way to save your money and a REIT may be the answer. A REIT is a real estate investment trust. This is essentially a mutual fund for real estate that will be used to buy, build or manage real estate ventures.
Those who are in REITs purchase shares, just like you would any stock, mutual funds or commodities on the stock market and allow that money to grow. In this case the growth comes from the lease, rent or mortgage insurance paid to the fund. The average return on REITs is 6-10%, which is triple, or quadruple of what most savings plans will net you in the bank.
Additionally, for the most part, REITs are pretty strong investments. Most of them are based on tangible pieces of property that are not going anywhere, so while values may fluctuate, they will still have some value.
Unlike buying real pieces of property, which means a lot of money, paperwork, and quite the hassle finding a buyer if you want to sell, REITs will allow you to instead sell your shares just like you would any other stock, mutual fund or commodities on the stock market.
If you're smart about this type of investment, you will treat it as a savings plan. As you get the money to purchase shares, make a purchase and then allow your annual dividends to be rolled back into purchase more shares. If you keep making your purchases on a regular time frame and let them grow. You may be surprised at just how much it grows for you to have down the road when you need it.
With the recent down market, there's no time like the present to buy. In the immortal words of multi-millionaire T. Harv. Eker, "Don't wait to buy real estate, buy real estate and wait."
If you have never heard of REITs or worked with them before, don't let that be a deterrent to you. Simply by logging on to a website such as REITBuyer.com you will be able to learn everything you need to know to be investing like a pro in no time and start that savings plan.
If you're completely new to this, begin with the basics. Make your way through the website learning all you need to know about REITs and then choose the ones that are best for you. The best part about REITBuyer.com is that you can then make your purchase on their website, as they are a full service investing real estate broker, and watch your portfolio all in the same place.
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