Real Estate Investment Trusts – The Time is Right for REITs

Real Estate Investment Trusts, aka, REITs, are quickly gaining the attention of real estate investors. Because of the shifts in the stock investing market, people are worried about putting their money into it at this time. With stock values declining, how does one know where to put their cash?

Perhaps it's time to consider other investing options out there like real estate. I don’t mean to say that you should buy properties. That comes with way too much hassle, putting together the cash to buy the property, fixing it up, maintaining it and managing it. It’s enough just to invest your money; your time may be better spent doing something else, like enjoying the return on your money

Real estate investment trusts are another option for investing in real estate. Real estate investment trusts or REITs are funds where you purchase shares of the investment and a real estate management group buys, develops, maintains and manages the income producing property. You essentially fund a portion of a property acquisition and management group.

In return for your investment, you will be paid a portion of any profit that the company makes, much like a stock dividend.

While you may be wondering how wise it is to consider real estate in today's tough market, this is exactly why it may be a good time to look at a little more investing. Here's why. Sure, there has been a tough time for the markets. Lending has decreased; foreclosures are on the rise. We're in tough credit times.

But now let's look at the positive side of things. Many experts believe the slide has slowed down and things will soon stabilize. Add this to the fact that those capital markets that REITs use to get their funding for expansion and other purchases are low and that means the chances for REITs to get the capital they want to expand has dropped, for now. While you may think this is a bad sign, the truth is this is a time when the value of REITs is lower, meaning you can get in at a lower price. As things settle and go back to normal, your profits will go up and you will see an even greater return on your investment.

This is the time to log onto a website like REITBuyer.com and find out what REITs are available, what they are selling for and get yourself in on this low tide so you can enjoy the ride when the financial wave picks up again.

Your other option is putting all of your money in the bank and seeing little to no growth.

Money Making Guru Robert G. Allen may have said it best saying, "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case."

REITs – Going to the Head of the Real Estate Investing Pack

REITs are quickly gaining popularity with real estate investors. In the world of real estate investing there are two kinds of people, those who see a profit and those that don't. Everyone wants to be a part of the first group, but few really know how to do it.

If you are to be successful with investing, you need to take a few lessons from the big dogs. After all, they got to where they are through years of hard work and investing. They are the experts; they make great role models.

The first thing you need to know is where to invest your money. There are many money moguls who will tell you they made their fortune in real estate.

Look at Donald Trump; his whole career was made on the right real estate moves at the right time. One thing to consider is that real estate is an asset, not a fluid commodity that could disappear overnight. What happens during a market downturn? Warren Buffet once said, "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years." Can you say that about your other holdings? If you have real estate in your investment portfolio, you probably could, as real estate is something that will still have value.

For many people who are accustomed to the more traditional types of investments, they are not really sure where to start when it comes to investing in real estate. Do you have to buy a piece of property? A house? An apartment complex? The answer is no. You don’t have to do any of those things. Purchasing property outright, while still a nice investment, is a much more difficult venture than most people want to attempt. With REITs, the investor owns a part of a fund, with something as liquid as a stock, without having to deal with all the paperwork, responsibility and liability exposure of a property owner.

This is why you should be looking at REITs. REITs are Real Estate Investment Trusts. Essentially these are the mutual funds of real estate. When you purchase shares in REITs you are putting money into a fund for a real estate management or development group to build or purchase real estate which they manage and operate.

Your profits are paid to you as dividends from the income produced by the property. From rent in residential properties to leases of business properties, 90 percent of the profits from REIT investments must go back to the shareholders in the form of dividends each year.

Beginning investing in REITs is simple; you just need to know where to look. A website like REITBuyer.com is a great resource for investors to learn about REITs and see how they are performing. They are also are a full service investing real estate broker that you can purchase your REITs through.