Sunday, April 19, 2009
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.
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.
Sunday, March 8, 2009
Making Real Estate Investing A Lifestyle
Are you a part time real estate investor? Do you have a few REITs in your portfolio that you look at from time to time to see how they are doing? If so, you are making one the mistakes that can keep you from being one of those investing success stories.
Many people look at investing as a hobby. It's just something to do with their extra money and they hope if they ignore it eventually it will grow into something. This is not the way to take care of your investments. Instead you need to take a more active role in them.
Investing is not a hobby. There is money on the line, serious money. It's your money, and you should treat it as such. That means once you start purchasing REITs you need to keep a closer eye on what they are doing as well as what the other markets around them are doing. This can help you key in on good time to buy, sell or make changes to your portfolio.
So what is the best way to do this? Well, you need to keep your investments in your own hands. The best method to this end is to go online with them. If your portfolio has REITs in it, it is even wiser to go with an online broker that knows and appreciates REITs like REITbuyer.com.
REITBuyer.com is a full service REIT brokerage firm, with REITs as their specialty, so you will be in a world where everything is focused on your market. That's good news for you because the more focused you can be on your preferred market, the more you can see what may be coming and know when to buy.
Once you sign up for REITBuyer.com, you need to learn how to use it to it's full potential to make sure you are getting everything you need to do better in investing. Start by making sure you know as much as you think you do about REITs. The education and advise area of the site will make sure you have all the knowledge you need to make smart decisions as you invest in new REITs or decide what to do with the ones you already have.
Next you need to keep up with what is happening right now. Remember, fortunes are made and lost in minutes on the market. While this is not as much the case with REITs, not knowing when to buy a REIT that is priced low can mean you are making less of a profit down the road. So, keep your eye on the REIT news section. This will give you an idea of what is happening in the market that could impact the REITs you have or are considering buying.
You should also look at the blogs and other statistics, as each of these things will give you a little more insight into what is happening.
Finally, when you are ready to buy or sell, you can take command of your portfolio and complete all of those transactions with online trading on the same website.
Wednesday, February 25, 2009
Real Estate Investment Trust – Building Your Bank Account
Have you ever wished that you could just make the right investments to the point where you could sit back and watch them grow? Perhaps you are not doing the right things with your money.
Many people who are looking for a long-term way to see constant increases on their investments choose to look into the REIT market as a way of seeing their money go further.
REITs are real estate investment trusts. In many cases, investors purchase REITs then sit back and let the monthly dividend check come in. From time to time they are able to purchase more shares and then watch larger divided checks come in.
The reason many people like REITs is that for the most part they are long-term investment options that are strong and stable. Since they are based on real estate holdings, and property always has value, they are a wise investment choice.
In the short term, this is a nice way to see a little money grow in your account from month to month. In the long term, if you play things right, it could end up meaning a lot of money down the road to the point where you have enough to live off of.
Having enough to live off of doesn’t happen over night. So, you need to start investing now to allow that little bundle of money time to grow into a major nest egg.
Begin by getting to know REITs. You should always have a good grounding on any type of investment that you are thinking of putting your money into. After all this is your hard earned cash you are putting into someone else's hands. Make sure you know what they are going to do with it and that you are confident they are going to take good care of it.
While you could search all over for the information you need, it's easier to do one stop shopping at REITBuyer.com. They are an investing real estate broker that also has a website that is meant to be the place to get all the information you need on the REIT market.
If you have never worked with REITs before, you can begin with the basic education on what REITs are and how they work. Then you can progress into the research section that will help you find REITs in your area of interest and find out how they have been doing as well as any analysis of those REITs and what they should be doing for the future.
When you're ready to make a purchase, you can also use the REITBuyer.com website to buy and sell your REITs and keep track of your portfolio.