Many investors say they want two things in their investments – a return on their money and some security that their money will not be here today and gone tomorrow. When it comes to trading on the stock market or purchasing mutual funds, those are usually two things that cannot be promised. When you purchase stocks, you never know if the company is going to have a bad quarter, losing you a chunk of your investment or if they are going to fail altogether, taking your money with them.
The only place you can really be sure that you will not lose everything in a bad session is in real estate.
Even if the bottom falls out of the real estate market, real estate that has been purchased is an asset. So, while there may be losses in a major downturn, you won't lose everything. Often in this case if you were to hold on for a little while and be patient it will all bounce back and you'll be seeing dividends come in again like nothing ever happened.
There are two ways to invest in real estate. The first is to make a real estate purchase. For the most part this means having a lot of money in hand to be able to buy a piece of property or a building outright. For most people this is not a possibility as this means having tens to hundreds of thousands of dollars in hand to invest.
There is another option however. Instead, why not be a part of a real estate investment trust or REIT. A REIT is where you are a shareholder in property ownership. This means you will purchase shares that go into a collective pot that is used to purchase and maintain properties. These properties could be anything from commercial buildings that are being leased out to residential buildings that are rented out.
The way a REIT works is that as the real estate management group makes a profit, that profit will be given to you as a dividend. Laws dictate that at least 90 percent of the profits from a REIT have to be returned to the shareholders, so barring a major downturn in the economy you know you will get a return on your investment year after year.
That other 10 percent of the profit from the REIT will go back into the management of the properties or possible improvement or expansions that will give you even more return on your investment dollar in the future.
Unlike regular real estate purchases, there is another benefit to REITs. If you ever needed to pull some of your money out it is as easy as selling a few shares instead of having to sell a property and go through all those hassles.
Getting into the REIT market is also relatively simple. Just go to REITBuyer.com and you can research the REITs out there and even make your purchases in one stop, as they are an investment real estate broker as well.
Thursday, March 12, 2009
Why to Buy REITs: Be Like Equity Office Properties Trust without its' Headaches
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.
Many people want financial freedom to happen overnight. It doesn't. It takes time, smart investments and smart decisions throughout the lifetime of those investments. But the important thing is to get started because the sooner you do the sooner those long term investments can get to work for you.
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.
Many people want financial freedom to happen overnight. It doesn't. It takes time, smart investments and smart decisions throughout the lifetime of those investments. But the important thing is to get started because the sooner you do the sooner those long term investments can get to work for you.
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