Tuesday, November 3, 2009

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."

No comments:

Post a Comment