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.
Tuesday, March 3, 2009
If You Don't Have a Retirement Plan, Then Buy REITs
Real Estate Investing For Retirement
Many people today are employed by themselves or small companies that just don’t have any sort of retirement plan. If you are one of these people, what have you done to make sure you are able to take care of yourself in your older years? Unfortunately for many people the answer is nothing. They don’t know where to begin or they have seen someone else lose everything in the stock market and are in fear of that type of investment.
While you may think that all stocks, bonds, mutual funds and everything connected to the market is evil these days, there are some investing avenues that will be there for you and can even help you see a healthy profit on your investments.
In this case we are talking REITs. A REIT is a real estate investment trust. This is essentially a holding company that uses the money from shareholders to purchase or manage real estate interests. Whether it's mortgage brokering or store and apartment complex purchasing, the money that comes in as interest payment or profits from the real estate holdings is then returned to the investors in the form of a dividend.
Traditionally, REITs pull in a 6-10% dividend annually. Some investors turn away from this type of return saying it's not enough to warrant putting their money in these accounts, but if you are working towards retirement, you need to look at this differently.
Unlike stocks, your REITs may not see massive gains in a year, although sometimes they do. Also unlike your stocks, your REIT investment is not going to disappear. While REITs can lose value, since they are property holdings, and property always has some value, they will not disappear completely taking your money with them.
Meanwhile, a return of 6-10% a year on a regular amount of money being put into a REIT will help you put aside a healthy little nest egg. It is a better savings option than you would get by putting your money in a bank or other secured interest possibility, while still being a pretty stable and steady investment that is not likely to go away.
If you keep putting your dividends right back into the investments, you may be surprised at just how fast your money will grow. While it is a long-term investment, in time you will be pleased with the returns.
Once you're ready to learn more about REITs it's time to do your research. This begins on REITBuyer.com. REITBuyer.com is a website that specializes in REITs. They are not only an information source, but also an investing real estate broker. That means they are the pros in this arena and can not only help you learn more about these types of investments, but also offer you the tools and research you need to make wise purchases and even let you make those purchases online.
There is no time like the present to begin your retirement fund. REITs are wise long-term investments that can help your fund see the money it needs when you get to retirement age.
Many people today are employed by themselves or small companies that just don’t have any sort of retirement plan. If you are one of these people, what have you done to make sure you are able to take care of yourself in your older years? Unfortunately for many people the answer is nothing. They don’t know where to begin or they have seen someone else lose everything in the stock market and are in fear of that type of investment.
While you may think that all stocks, bonds, mutual funds and everything connected to the market is evil these days, there are some investing avenues that will be there for you and can even help you see a healthy profit on your investments.
In this case we are talking REITs. A REIT is a real estate investment trust. This is essentially a holding company that uses the money from shareholders to purchase or manage real estate interests. Whether it's mortgage brokering or store and apartment complex purchasing, the money that comes in as interest payment or profits from the real estate holdings is then returned to the investors in the form of a dividend.
Traditionally, REITs pull in a 6-10% dividend annually. Some investors turn away from this type of return saying it's not enough to warrant putting their money in these accounts, but if you are working towards retirement, you need to look at this differently.
Unlike stocks, your REITs may not see massive gains in a year, although sometimes they do. Also unlike your stocks, your REIT investment is not going to disappear. While REITs can lose value, since they are property holdings, and property always has some value, they will not disappear completely taking your money with them.
Meanwhile, a return of 6-10% a year on a regular amount of money being put into a REIT will help you put aside a healthy little nest egg. It is a better savings option than you would get by putting your money in a bank or other secured interest possibility, while still being a pretty stable and steady investment that is not likely to go away.
If you keep putting your dividends right back into the investments, you may be surprised at just how fast your money will grow. While it is a long-term investment, in time you will be pleased with the returns.
Once you're ready to learn more about REITs it's time to do your research. This begins on REITBuyer.com. REITBuyer.com is a website that specializes in REITs. They are not only an information source, but also an investing real estate broker. That means they are the pros in this arena and can not only help you learn more about these types of investments, but also offer you the tools and research you need to make wise purchases and even let you make those purchases online.
There is no time like the present to begin your retirement fund. REITs are wise long-term investments that can help your fund see the money it needs when you get to retirement age.
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