If you are in the market to put some of your investing dollars into real estate investment trusts or REITs, you want to make sure you are putting that money in solid REITs that will hopefully bring you a great return on your investment. But with so many REITs out there, how do you wade through them all and find the best ones for your money?
Annual Report
The first thing you need to do is get your hands on a prospectus or annual report for the REIT. Just like anything else you are going to put your money into, you need to know more about the investment and what it has done in the past. If you think about it, you do this in many aspects of your life. If you are going to buy a car, you look up it's reviews and history of performance. Why wouldn't you do that when you are investing money in REITs? You should!
Once you get the annual report, take a look at the performance for the past year (or longer if it's mentioned). Remember to take into account the market conditions overall in the past year when you look at the numbers.
Management Team
The next thing you are going to want to really take a look at when it comes to REITs is the management team behind the REIT. Do your research and get to know who is going to be making the decisions relating to the money you have invested in your REITs. Each REIT out there will be managed by a company, and a financial professional within that company. Get to know that pro and read up on their history in financial markets.
Diversity
The next thing you want to make sure of is that the REIT you are considering offers a good amount of diversity for your investing dollar. What is inside a REIT will vary widely, so you need to take a close look at the options that are available in the REITs you are considering. If you are wise, you will want to make sure there is some diversity inside the REIT so if one sector or region is having a bad time of it, the other investments inside the portfolio should hold things together.
When it comes to REITs there are often a number of ways they can diversify either literally by region (as in various parts of the US) or by sector with investments in residential, commercial, industrial, hospital and health care, self storage or a number of other investment arenas.
When you are ready to start that research, you should team up with a company like REITBuyer.com. REITBuyer.com is the first and only online brokerage that specializes in REITs and real estate mutual funds. That means they will have all the information you need to compare and contrast the REITs you are considering. Once you have done that, you will be able to make a purchase and monitor your portfolio, all in the same place.
This article was written by Earl E. Bird, III, spokes person for the REITbuyer.com, a website designed to educate investors on REIT buying and investing in Real Estate Mutual Funds. Whether you are a savvy investment guru or a new investor looking for guidance, Reitbuyer.com has everything you need to be successful. Visit http://bankfirst.blogspot.com for more information.
Friday, May 22, 2009
Tuesday, March 3, 2009
The Stock Market Is Taking It's Share Of Hits - Get Back on Solid Ground With REITs
Real Estate - The Wise Investment
In today's touchy economic climate many people want to be doing something to invest their money wisely, but are not sure how to do that. It seems every time you look at the business section all you see is more bad news about markets taking a tumble.
So, what is an investor to do? Well now may be a good time to take on an investment in something that is solid and has assets backing it up like Real Estate.
Sure, you're thinking that the real estate investment market has taken its share of hits. Yes, it has. But if you compare the hits it takes in a down market to the other mutual funds, stocks, bonds and options out there, you will see real estate is still the way to go.
For example, in one chunk of the market drop the regular stocks were down in a painful way. People then looked to see what the more stable commodities were doing. Even they were down. Utilities were down 4-5 percent. But at this same time real estate funds were down less than a percent. That should tell you something. Even when the rest of the investing building is crumbling, real estate is still a pretty strong corner stone.
Sure, some markets are still rather low for where most investors would like them to be, but if you look at this in a different way you may see the light.
While the funds may be low now, real estate is an asset. That means real estate will never completely lose it's valuable. That tangible piece of land or building will always retain some value. Therefore unlike the regular stock market where a bad day could wipe all of your money away, the real estate investing market will usually allow you to at least keep your investment, although you may not see as much profit as you would like.
How to Invest in Real Estate
The next thing you may be wondering is how to start getting invested in real estate. The first thing you need to do is your homework. You need to know what is best to invest in and how to get your money into those markets.
Begin by going to REITBuyer.com. This is a website that is in the business of real estate investments and real estate investment trusts (REITs).
Unlike other brokerage firms that just want your money, they also want to make sure you know what you are getting into. The website is filled with information about REITs and the real estate market in general. This will give you a good base in the options that are out there and which ones you may want to consider purchasing.
Once you know which ones are the best to put into your portfolio, REITBuyer.com can take care of that part of the process as well, making the purchases for you.
After the purchase has been made, they will also help you keep up with your REITs and follow their progress in the weeks, months and years to come.
In today's touchy economic climate many people want to be doing something to invest their money wisely, but are not sure how to do that. It seems every time you look at the business section all you see is more bad news about markets taking a tumble.
So, what is an investor to do? Well now may be a good time to take on an investment in something that is solid and has assets backing it up like Real Estate.
Sure, you're thinking that the real estate investment market has taken its share of hits. Yes, it has. But if you compare the hits it takes in a down market to the other mutual funds, stocks, bonds and options out there, you will see real estate is still the way to go.
For example, in one chunk of the market drop the regular stocks were down in a painful way. People then looked to see what the more stable commodities were doing. Even they were down. Utilities were down 4-5 percent. But at this same time real estate funds were down less than a percent. That should tell you something. Even when the rest of the investing building is crumbling, real estate is still a pretty strong corner stone.
Sure, some markets are still rather low for where most investors would like them to be, but if you look at this in a different way you may see the light.
While the funds may be low now, real estate is an asset. That means real estate will never completely lose it's valuable. That tangible piece of land or building will always retain some value. Therefore unlike the regular stock market where a bad day could wipe all of your money away, the real estate investing market will usually allow you to at least keep your investment, although you may not see as much profit as you would like.
How to Invest in Real Estate
The next thing you may be wondering is how to start getting invested in real estate. The first thing you need to do is your homework. You need to know what is best to invest in and how to get your money into those markets.
Begin by going to REITBuyer.com. This is a website that is in the business of real estate investments and real estate investment trusts (REITs).
Unlike other brokerage firms that just want your money, they also want to make sure you know what you are getting into. The website is filled with information about REITs and the real estate market in general. This will give you a good base in the options that are out there and which ones you may want to consider purchasing.
Once you know which ones are the best to put into your portfolio, REITBuyer.com can take care of that part of the process as well, making the purchases for you.
After the purchase has been made, they will also help you keep up with your REITs and follow their progress in the weeks, months and years to come.
Don't Worry About No Stock Returns
The Good and Bad of Real Estate Investment Trusts
Real Estate Investment Trusts, or REITs, are an avenue of investment that many people have heard of, but have not taken a good look into. Let's take that look now.
First, you need to understand what a REIT is. It is generally a property management investment. You fund a property management company and let them run a real estate asset, with you getting dividends from the profit. For example, a commercial real estate REIT may own a shopping center or strip mall. When you purchase shares of that REIT they are going into building and maintaining that structure. As tenants move in and rent those spaces, and the REIT profits, the profits come back to you in the form of dividends. This is also the case for residential real estate interests like housing developments, apartments and condominiums.
So now let's look at the good and bad sides of this investment option.
Dividends – Unlike other stocks and mutual funds, REITs come with some very strict rules for how their profits can be used. As profits come into a REIT, at least 90 percent of that profit must go right back to the shareholders in the form of dividends. That means most REITs always see a nice annual return on the initial investment, averaging 6% or more.
Their Own Entity – If you have noticed, the stock market has an all for one kind of approach to things. Often if one area of the market goes down, the rest follows, hitting you across the board. But REITs are their own creature. By not being as strongly tied to other investments and stock fluctuations, they can hold strong even when the rest of the market is on a roller coaster ride.
Solid Starting Platform – If you are not a major investor in general, REITs may be the way to go to begin your investment portfolio. For the most part they are strong and stable purchases and can bring in a good, steady profit for years to come.
Constant Investment – Since REITs revolve around property investments, there is always something tangible – a piece of land, homes, apartments or businesses. Usually these also have long-term leases, which means there will be money coming in from those leases to feed your dividends.
Bad
There aren't that many bad points to REITs, but here are a few:
Slow Growth - If you are looking for a major growth in your REIT, you likely won't see it. Since only 10% of the money made can be put back into the REIT (as 90% has to be paid out as a dividend) that means there is a lot less going back into the business to make it grow more quickly.
Down Times – Just like any other investment, there is always the chance that a downturn in real estate will make it where your REIT does not bring in a profit for the year.
Despite these few bad points, REITs are worth looking into. Start by going to a full service website like REITBuyer.com. There you can get information about REITS, tools and research help as well as education and advice before you buy. When you're ready, they are also investment real estate brokers who can take care of the entire transaction.
Real Estate Investment Trusts, or REITs, are an avenue of investment that many people have heard of, but have not taken a good look into. Let's take that look now.
First, you need to understand what a REIT is. It is generally a property management investment. You fund a property management company and let them run a real estate asset, with you getting dividends from the profit. For example, a commercial real estate REIT may own a shopping center or strip mall. When you purchase shares of that REIT they are going into building and maintaining that structure. As tenants move in and rent those spaces, and the REIT profits, the profits come back to you in the form of dividends. This is also the case for residential real estate interests like housing developments, apartments and condominiums.
So now let's look at the good and bad sides of this investment option.
Dividends – Unlike other stocks and mutual funds, REITs come with some very strict rules for how their profits can be used. As profits come into a REIT, at least 90 percent of that profit must go right back to the shareholders in the form of dividends. That means most REITs always see a nice annual return on the initial investment, averaging 6% or more.
Their Own Entity – If you have noticed, the stock market has an all for one kind of approach to things. Often if one area of the market goes down, the rest follows, hitting you across the board. But REITs are their own creature. By not being as strongly tied to other investments and stock fluctuations, they can hold strong even when the rest of the market is on a roller coaster ride.
Solid Starting Platform – If you are not a major investor in general, REITs may be the way to go to begin your investment portfolio. For the most part they are strong and stable purchases and can bring in a good, steady profit for years to come.
Constant Investment – Since REITs revolve around property investments, there is always something tangible – a piece of land, homes, apartments or businesses. Usually these also have long-term leases, which means there will be money coming in from those leases to feed your dividends.
Bad
There aren't that many bad points to REITs, but here are a few:
Slow Growth - If you are looking for a major growth in your REIT, you likely won't see it. Since only 10% of the money made can be put back into the REIT (as 90% has to be paid out as a dividend) that means there is a lot less going back into the business to make it grow more quickly.
Down Times – Just like any other investment, there is always the chance that a downturn in real estate will make it where your REIT does not bring in a profit for the year.
Despite these few bad points, REITs are worth looking into. Start by going to a full service website like REITBuyer.com. There you can get information about REITS, tools and research help as well as education and advice before you buy. When you're ready, they are also investment real estate brokers who can take care of the entire transaction.
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