If you have ever thought of real estate as an investment you like a lot more than stock trading, you may wonder how you can fund your own way to make money off of real estate instead of having to go the traditional stock and mutual funds route. Real estate investment trusts may be the answer.
Consider if you were able to own an apartment, rent it out and then keep the profits that you make? That would be a nice investment? What if you owned a complete apartment complex? There's a chance to make a lot of money there!
But now you're thinking there is no way you would be able to afford the purchase of a single unit to rent out much less a whole multi-family apartment complex.
But there is a way that you may be able to still get a piece of this pie within your budget through REITs. REITs are real estate investment trusts. These are like the mutual funds of real estate where investors put money into a fund that is used to purchase properties and then manage and maintain them.
The way you will make a profit is through the money that comes in from those units. The rent that comes in from the units will be used to pay for operating expenses and then much of the profits will be given back to the investors and shareholders. US law states that at least 90% of the profits must be given back to the shareholders each year.
One place a lot of people see as a possibility to make money is through multi-family apartments. The logic here is if one rental unit would make a nice amount of money, wouldn't more rental units mean even more money? The answer is yes, they would!
Most people could not afford to even consider purchasing an apartment complex and being a landlord to make those profits because it's too costly. This is where REIT's come in. By being a shareholder in a REIT you will be able to be a part owner in those multi-apartment buildings you were thinking of and reap the rewards.
Getting involved in REIT buying is easy. When you are ready to learn more about this type of trading and investment, go to REITBuyer.com. Here you will be able to find all the education and information you need to make informed decisions about purchasing and investing in REITs.
With the research tools available on their website you will also be able to find out which REITs have the investments you want, multi-family apartments, so you can start seeing those fast returns.
Before you buy, you may want to do your homework. With REITBuyer.com you will be able to look up the REITs, their past, and get an idea of where they may be going in the future so you buy wisely.
Then when you're ready to buy you can make the purchase on the website and watch your investment grow.
Sunday, March 22, 2009
"Apartment Communties" What to Know Before Purchasing a REIT
If you have been thinking about purchasing a REIT (Real Estate Investment Trust), make sure you know what you are getting into before you make the purchase. A lot of people read up a bit on the various investments they are considering and then make purchases because they like the way something sounds.
With stock, bond and mutual fund purchases this may be a normal thing, but when you are doing real estate investing you should do more research, and it's easy.
Location Location Location
The first thing you should get to know when you are considering a REIT is where it is located. What is the market like in that area? This can be easily found with a little Internet research these days. Find out what complexes, properties, malls or industrial parks are included in the REIT you are considering buying and look up those areas. The more you know about the land and building value of the property you are investing in, the more you can know you are making a wise investment decision that has nowhere to go but up.
Stability
If you are investing in a new real estate development REIT this is not as much of an option, as you will not necessarily know how the project will go once construction is complete, but if you are considering purchasing shares in an established REIT, take a look at their history. Have they shown stability in the recent months or years? If they have, this is a good sign they will continue to do so.
One thing you should keep in mind on this front is that all markets, real estate included, have had a tough time over the past year or so, so if their strength only wavered during that time, you should not be too alarmed.
Profits
The bottom line here is that you want to make money. Before you get into a REIT, make sure it is one that will be making you money from the beginning and for years to come. Some REITs make more than others and the key to finding ones that will make you a better return is looking for those that are fully booked with tenants or are in a growing area that will not have a problem filling all the leases so you know the profits will start rolling in.
Doing this research may sound daunting, but it’s not if you know where to go. For example, REITBuyer.com is a website that offers all the information you need about the REIT market. You can do your research, look at past REIT investments, see comparisons of the REITs to the stock market and really get a better understanding of the investments you are considering making.
Once you have become knowledgeable and know which REITs you want to invest in, you then only have to go as far as a few mouse clicks to purchase them through REITBuyer.com, as they are a full service investing real estate broker. Then sit back and watch your work pay off.
With stock, bond and mutual fund purchases this may be a normal thing, but when you are doing real estate investing you should do more research, and it's easy.
Location Location Location
The first thing you should get to know when you are considering a REIT is where it is located. What is the market like in that area? This can be easily found with a little Internet research these days. Find out what complexes, properties, malls or industrial parks are included in the REIT you are considering buying and look up those areas. The more you know about the land and building value of the property you are investing in, the more you can know you are making a wise investment decision that has nowhere to go but up.
Stability
If you are investing in a new real estate development REIT this is not as much of an option, as you will not necessarily know how the project will go once construction is complete, but if you are considering purchasing shares in an established REIT, take a look at their history. Have they shown stability in the recent months or years? If they have, this is a good sign they will continue to do so.
One thing you should keep in mind on this front is that all markets, real estate included, have had a tough time over the past year or so, so if their strength only wavered during that time, you should not be too alarmed.
Profits
The bottom line here is that you want to make money. Before you get into a REIT, make sure it is one that will be making you money from the beginning and for years to come. Some REITs make more than others and the key to finding ones that will make you a better return is looking for those that are fully booked with tenants or are in a growing area that will not have a problem filling all the leases so you know the profits will start rolling in.
Doing this research may sound daunting, but it’s not if you know where to go. For example, REITBuyer.com is a website that offers all the information you need about the REIT market. You can do your research, look at past REIT investments, see comparisons of the REITs to the stock market and really get a better understanding of the investments you are considering making.
Once you have become knowledgeable and know which REITs you want to invest in, you then only have to go as far as a few mouse clicks to purchase them through REITBuyer.com, as they are a full service investing real estate broker. Then sit back and watch your work pay off.
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