Wednesday, December 9, 2009

REITs – Investing in Real Estate without the Hassles of Owning Property

You’ve been told how great of an investment real estate is, but you don’t care for the idea of owning and managing property. The profits would be nice, but you are not thrilled with being a landlord or complicating your income tax return.

It sounds like REITs are just what you are looking for. REITs allow you to enjoy the profits of owning property without having to hold title, deal with tenants, make repairs and risk liability exposure should something happen that is beyond your control.

REITs – How they Work for You

Instead purchasing and owning a piece of property, you can purchase a share in a real estate management group. There will be at least 100 shareholders that join into the purchase and their money will be pooled to be used for real estate development or real estate management.

When a purchase is made at least 90 percent of the profits from the rent or lease payments will be paid to the shareholders in the form of dividends. The other 10 percent is allocated to maintenance or growing the REIT. This means you will almost always see a good return on real estate through REITs. All you need is a series of places that are rented and you will see regular income.

This kind of profit making on property is essentially what you were thinking of doing on your own through real estate investing. If you were going to buy a piece of property, you would either want to sell or lease it out to make a profit. The only problem is that you would also be responsible for all the work of keeping the place in order and keeping things running. By moving into the REIT market you are able to get all of the benefits of this fund without having any of the headaches.

Now, it's important to note that you may not make a fortune in REIT investing, but it is a pretty steady way to see income, and sometimes you really can hit it just right and make a fortune. As a matter of fact some people, like Ivana Trump, count real estate as the only place to put their money. She was quoted as saying. "I made a tremendous amount of money on real estate. I'll take real estate rather than go to Wall Street and get 2.8 percent. Forget about it."

If you don’t know enough about REITs to make an intelligent investing decision then there are online resources for getting the education your need. Begin by going to REITBuyer.com, a website loaded with resources and education to give you the insight you need. When you are ready to buy, let their real estate investing brokers do the work for you. Once you have added a few REITs to your portfolio use their online tracking and analyzing tools keep an eye on your investments and to see how they are stacking up.

REITbuyer.com is an online brokerage information site specializing In REITs and Real Estate Mutual Funds – The World’s first and only site dedicated to REITs Real Estate Mutual Funds. This is a place for the small investor to own a piece of world class real estate.

2 comments:

  1. I agree investing in a REIT like a Cole REIT is a much smarter choice than actually buying real estate. I mean if you bought a house you'd have to become the landlord or pay someone to manage the place so yes REITs are the way to go. Also Cole has a diversified portfolio which is something you want to look for in a REIT.

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  2. I second that I'd invest in something like a Cole REIT hands down before actually owning a property as an investment.

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