Getting to Know Two Kinds Of REITs
By now, you may have heard of REITs. If not, this stands for Real Estate Investment Trusts. These are essentially funds that you can purchase shares of to build, buy or manage real estate holdings. Annually, the bulk of the profits from the real estate holdings are used to send dividends to the shareholders.
Generally there are two kinds of REITs – Property Owning and Mortgage.
Many of the most popular REITs fit into the first category – property owning. These are REITs that use their funding to purchase properties and then make a profit from those properties that they pass on to their shareholders.
These REITs could own any of a number of property types. Many focus just on commercial real estate such as strip malls and stores. Others focus on residential real estate like homes, condominiums and apartment complexes. Still others have a focus on the industrial sector, with real estate investment in warehouses and other industrial needs.
The other style of REIT is a mortgage REIT. These REITs are more on the backside of things. Their money goes into mortgage securities and purchasing mortgages with a hope to make a good profit on the interest from those properties.
There are also REITs that combine both of these aspects and put some of their money into each area.
For the most part, REITs are a smart investment. Generally they see a return of 6-10 percent on investments. They can always see more, but many people just like the fact that for the most part they will have a positive return that they would not have seen otherwise.
Before you begin on any sort of investment path, you need to know just what you are getting into. That means you need to do your research. If you want to start to get a look at some REITs and what they do, that's not a problem. Just like other stocks, bonds and mutual funds, they are publicly listed, so you will have no problem finding them and seeing how they are faring in comparison with the stock market.
The wisest way to go about this research is to use a site like REITBuyer.com. This is a site that is focused on this specific type of investing. You will be able to do the research you need to learn about the specific REITs you are interested in, plus get a lot more.
One of the things you may want to keep an eye on at REITBuyer.com is the news feed. It is news specifically related to the REIT market. That means you don’t have to spend a lot of time sorting through all the financial news of the day. The information you need will be right there.
Then when you are ready to buy, that's made easy as well. Considering that REITBuyer.com is a complete investing real estate broker, you will be able to buy, sell and trade your REIT investments right from their website.
Tuesday, March 3, 2009
REITs: Work Like Mutual Funds, In the Area of Real Estate
How to Get Involved in Business Real Estate
Many people want to learn how to make the big bucks when it comes to investments. Generally this means knowing how to get into commercial real estate and how to do it right. This is how people like Donald Trump made their fortunes. But are you ready to be the next Donald Trump?
For most people the answer is no. Not because they don’t want to be the next Donald Trump, but because they don't have the cash on hand to get started like Donald does. That's ok. You can start small. One way to start small on commercial real estate is through REITs. A REIT is a real estate investment fund. This is a fund that that works much like a mutual fund but in the area of real estate. You can purchase shares of this fund and then that money is used to purchase, build or maintain properties.
As those properties make a profit, you will get a good percentage return on your investment. By US law, 90% of the profit from a REIT has to be returned to the shareholders in dividends, so if a REIT investment goes well, there could be major earnings.
As you wonder if this is the right way to go for you, why not take on this quote from Will Rogers, "Buy land, they aren't making anymore of it."
That is a very true assessment! There is only so much land to go around and with a growing population, more and more people are going to want a piece of it.
While you may think this only impacts residential properties, if you think a little harder you will see how it could also have an impact on commercial real estate.
While all those people in the growing population will indeed need places to live, they will also need places to shop, have their hair done, buy cars, and for any number of other services that they expect these days. That means commercial ventures that are going to serve this growing population are going to need commercial real estate to work from. If you are a part of a real estate REIT that owns that property you can have a tenant that is paying you profits for years and years to come.
Beginning your venture in to commercial REITs is easy. Start by going to REITBuyer.com. This is a website that focuses specifically on REITs instead of all the other types of investments out there.
Now take a little time to research the REITs that are available. You can look into the portfolio of a REIT to see what type of property is in its holdings. Some are residential and industrial as well as commercial, so if you want just commercial, make sure to weed out the rest.
Next, you should take a little time to see what that REIT has done in the past. See if it has been steady (give or take a few tough market seasons) and if the area where they are located is a good market for future revenue.
If so, it only takes a few steps to purchase the REIT through the site and enjoy your first step into the world of commercial real estate.
Many people want to learn how to make the big bucks when it comes to investments. Generally this means knowing how to get into commercial real estate and how to do it right. This is how people like Donald Trump made their fortunes. But are you ready to be the next Donald Trump?
For most people the answer is no. Not because they don’t want to be the next Donald Trump, but because they don't have the cash on hand to get started like Donald does. That's ok. You can start small. One way to start small on commercial real estate is through REITs. A REIT is a real estate investment fund. This is a fund that that works much like a mutual fund but in the area of real estate. You can purchase shares of this fund and then that money is used to purchase, build or maintain properties.
As those properties make a profit, you will get a good percentage return on your investment. By US law, 90% of the profit from a REIT has to be returned to the shareholders in dividends, so if a REIT investment goes well, there could be major earnings.
As you wonder if this is the right way to go for you, why not take on this quote from Will Rogers, "Buy land, they aren't making anymore of it."
That is a very true assessment! There is only so much land to go around and with a growing population, more and more people are going to want a piece of it.
While you may think this only impacts residential properties, if you think a little harder you will see how it could also have an impact on commercial real estate.
While all those people in the growing population will indeed need places to live, they will also need places to shop, have their hair done, buy cars, and for any number of other services that they expect these days. That means commercial ventures that are going to serve this growing population are going to need commercial real estate to work from. If you are a part of a real estate REIT that owns that property you can have a tenant that is paying you profits for years and years to come.
Beginning your venture in to commercial REITs is easy. Start by going to REITBuyer.com. This is a website that focuses specifically on REITs instead of all the other types of investments out there.
Now take a little time to research the REITs that are available. You can look into the portfolio of a REIT to see what type of property is in its holdings. Some are residential and industrial as well as commercial, so if you want just commercial, make sure to weed out the rest.
Next, you should take a little time to see what that REIT has done in the past. See if it has been steady (give or take a few tough market seasons) and if the area where they are located is a good market for future revenue.
If so, it only takes a few steps to purchase the REIT through the site and enjoy your first step into the world of commercial real estate.
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