Sunday, January 31, 2010

Investing in REITs – Real Estate with Liquidity

Investing in REITs means owning real estate with liquidity: As many people these days are finding out while real estate seems like a wonderful investment, it can also be a painful one if your investment was in a piece of property that you own outright. Many people who had purchased investment properties or homes they were planning to flip for a profit were sent into bankruptcy in the recent housing market crash.

With that said, real estate has long been the solid investment option for those who like to put their money somewhere that it can see results but also remain stable.

So, how does one be able to still be involved in the real estate market and not be caught in that same trap? The answer is by purchasing REITs. A REIT is a real estate investment trust. This means it is much like a mutual fund in that a number of shareholders put money into the fund and that money is used to purchase, finance or manage real estate properties. The profits on the fund then come from mortgage interest, rent or lease moneys that come in.

For the most part a return on REITs averages 6-10%. U.S law dictates that 90% or more of the profits on a REIT go to the shareholders, and that makes them a pretty strong investment option.

The short version of what a REIT is, is a way to be a partial owner in real estate.

But with this said, one of the things that many people fear about real estate, being stuck with a property that will not sell in a down market, is not a problem here. Instead, REITs are totally liquid. If you think things are not going to go well in the future of your REIT, you can sell and get out and then put your money back in when things are looking up again. If you do this right, just this can be a big profit maker for you as you will be pulling your money out when the REIT is high and then putting it back in, and getting more shares, when the market is low.

If you are one of those people that think there's no way to know when the market will do well or fail and that it's all luck, that's not necessarily true. As Smith Barney said, "There's blind luck, dumb luck and then there's get up every morning at 5:30 and sweat the details luck. Few people actually stumble into wealth. It takes persistence, tenacity and a tireless work ethic. In the end, luck has little to do with success."

This is also the case here, by doing your own research and keeping on top of the market you will be able to make wise investing decisions. With the help of REITBuyer.com you will be able to do this. REITBuyer.com has all the tools and resources you need to make wise decisions about investing in REITs. The added benefit by being a part of REITBuyer.com is that not only will you have that information at your fingertips, but also the ability to buy and sell your REITs as they are an investing real estate broker.

22 comments:

  1. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
    real estate investing blog

    ReplyDelete
  2. Investing in real estate is really great. In this sector money growth is rapid and their will be a great opportunity in the infrastructure industry.

    Best Mutual Funds

    ReplyDelete
  3. Hello I want to congratulate to them by its site of the Web of the excellent looks like entertained and very good very to me it elaborated. I invite them to that they explore a little on my Web site. Lots in Samara Costa Rica

    ReplyDelete
  4. in my humble opinion, investing in real estate is really a high yield, low risk type. the only dis advantage is liquidity. you cant just buy and sell your asset right away. you need time to get the best deal. there are other investing money options in Investing Money.

    ReplyDelete
  5. Send Flowers to denmark

    Hey great stuff, thank you for sharing this useful information and i will let know my friends as well.

    ReplyDelete
  6. I love when I have the opportunity to read blogs as interesting as this. really thanks and congratulations.
    Flower store in UK

    ReplyDelete
  7. I’m hoping that we’ll end up with a slew of prototyped ideas and a bunch of happy people. I’m sure there’ll be a lot more hard work until we can turn those embryonic proofs of concept into living.neverfull | louis vuitton mahina

    ReplyDelete
  8. Real estate is a great opportunity for investment and stability. However, the success of the business depends on the focus of the company, management, privileges and economy. Say for example a commercial real estate in Houston TX., focuses on value added redevelopment opportunities to strengthen the acquisition and leasing power to generate more revenue.

    ReplyDelete
  9. great read i really enjoy reading about cape coral real estate will save blog and share.

    ReplyDelete
  10. In the new Louis Vuitton Cabas Rivington core values campaign ,the ads features astronauts photoshop software Buzz Aldrin who is the first woman astronaut into space, Jim Lovell the director of Apollo 13 and Sally Ride the first louis vuitton moda astronaut who left his footprint in the moon. The three astronauts pose buy replica handbags with a battered pickup truck and a travel bag while gazing up into the sky in the California desert nrgbh100901.

    ReplyDelete
  11. Probably Gold and Real Estate are the safest investment avenues in the current scenario.
    Top Mutual Funds

    ReplyDelete
  12. Many investors are attracted to REITs for their high interest rate yields. It can certainly be a good choice for an investor who's looking for a way to get involved in real estate.

    - nnn lease

    ReplyDelete
  13. I feel Real Estate and Equity Funds are the best investment opportunity.

    Visit globalinv.net for investments information

    ReplyDelete
  14. Mr. Reit Buyer, I am Director of Funding and Finance for am exciting, impressive new Real Estate Development project in Costa Rica. I am wondering if you can lead me toward a REIT or investor which may want to take partnership in our project. Would you please advise? I'll make it worth your while. Thank you.

    ReplyDelete
  15. I find this post interesting and I am glad to read it. I have been looking for this kind of post. I will be visiting this blog more often for more post like this.

    invest in real estate Baltimore MD

    ReplyDelete
  16. Great post and site! Keep it up! Find out more about Mutual Funds and funds

    ReplyDelete
  17. Real estate prices are booming in metors, and probably Real estate is the only investments where you will be comfortable irrespective of the market conditions.
    Invest in Best Mutual Fund

    ReplyDelete
  18. Real estate is a business that I would like to try my luck into one day, soon! I have a few friends who already started their own real estate business and they have success, I hope it will happen to me, too!
    phentermine 37.5

    ReplyDelete
  19. My brother doing this business and believe me it not easy.

    xanax bar

    ReplyDelete
  20. I acquisition this column absorbing and I am animated to apprehend it. I accept been attractive for this affectionate of post. I will be visiting this blog added generally for added column like this.Real estate for sale ads

    ReplyDelete
  21. I was worried when I was about to purchase my house with my bad credit score. I was declined a loan from my bank and couldn't get it. I explained to a friend, he then introduced me to the greatest man of all time Pedro Jerome. I explained my problem to him by sending a text to his mail and he helped me get everything solved in the space of 3 working days. He granted me a loan of 400,000.00 Euros to pay for my house in which I also used to expand my business as well. May God bless him! You can apply for a quick loan from Mr Pedro Jerome who is working with a group of investors..He’s the wizard everyone is talking about all over the internet..Contact him via Mail on Mr Pedro pedroloanss@gmail.com. WhatsApp Number: +18632310632

    ReplyDelete