Thursday, February 26, 2009

Investing in REITs is Easy

REITs – Buy Now, Sell High

With so many people panicking after this past year's investment woes, there are some great deals to be had in the investment world. One of the best ones out there is in the real estate arena.

A lot of people are reluctant to put out any type of money into investments right now, thinking that since it's a bad time, things must be getting ready to get worse and worse. Well in real estate, this is not possible.

Think about this for a minute. Unless it is going to sink into the ocean or completely disappear into a black hole, the property behind a real estate investment will always be around. Sure, it can lose money and have a tough time, but it will be around and still have value.

Another thing to keep in mind is right now, as many other investors are doing what you are doing and worrying, those who move forward and make a buy will be the ones who have the most to gain as the market starts to rise again.

It's like Albert Einstein said, "In the middle of every difficulty lies opportunity". While he may have been talking about science, it also works for the world of economics and investments. Sure we are in the midst of a difficult economic time when it seems every stock, bond and mutual fund has dropped through the floor and that any investment is doomed to fail. But, what if you look at the opportunity side of that. If you look around, the real estate market has bottomed out for the most part. That means the current opportunity is in investing in more of it and seeing a return on that investment.

Now that I have you thinking of opportunity, you may be thinking there is no way you will be able to afford purchasing properties right now. No one said you had to buy properties outright. Instead, why not purchase shares of property? This can be accomplished through real estate investment trusts or REITs. Being a part of a REIT allows you to purchase shares of a real estate development or real estate management company and still be in on the market without having to buy a whole property yourself.

In a REIT when the management group profits (through leases, rent or mortgage interest) at least 90% of that profit must be passed on to the investors. This will come in the form of a dividend. In many cases you will see a 6-10% return on your investment every year, as that is the average. In some years you may even see your real estate out perform the stock market.

Investing in REITs is easy. They are publicly traded and you can go to a website like to research the REITs you are interested in, look at their past, possible futures and even make the purchase all in the same place, as they are an investing real estate broker.

We're at a point in the economic tide right now where it's either time to make a move or stay out of the game. Only those who play can win.

Wednesday, February 25, 2009

A Monthly Dividend Check with REITS

Consistent Returns with Real Estate Investment Trusts

If you're looking for an investment that has proven returns, you may not be sure just where to look in today's ailing economy. What about REITs? REITs, or Real Estate Investment Trusts are known for consistent returns and can be a strong and always positive part of your investment portfolio.

Sure, everyone wants to find the next great investment, an investment that will bring them the big bucks and make them an overnight millionaire. Although this does happen, the cases of that are few and far between. Instead, you need to focus on making sure you have a diverse portfolio that will hold you through all times.

Consider this scenario. You see the next big thing coming. You sink all of your money into that particular thing and wait for it to reach the top. Before you get a chance to pull out, the market plummets, taking all of your profits with it and possibly even some of your principal. That's a horror story that comes true for plenty of investors year after year. The flaw in their thought is that they put all of their eggs in that one basket! When the basket fell, everything went with it.

Now consider this scenario. You see the next thing coming and put a good portion of your investment funds in that arena, while still also putting some of your money into more secure or long-term investments like real estate. You again wait for the investments to reach the top, but the bottom falls before you expect. While you may take a major hit on the one side, that other, long term investment side of things you had also been putting money into will still be there and will give you a little bit of a base to rebuild from. You will still have a portfolio with some strength, versus one that is nearly empty.

Real estate is often considered the rock when it comes to investment, just ask Donald Trump who says, "It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate."

The good news is while being solid, REITs can still bring a pretty good profit. Consider that many REITs make a 10-14 percent return every year. That's a nice strong return when it happens for 10, 20 or 30 years without fail! If you look at the overall performance of the stock markets and most mutual funds, you will see there is not much difference in the two for long-term returns.

When you're ready to start investing in real estate, you need to make sure you know what you're getting into before you buy. While you could search all over and try to find out for yourself, there is another option as well. Consider a website like offers all the information you need to understand REITs, where they come from and how to best begin investing. In addition, you don't have to go anywhere else when you are ready to add REITs to your portfolio, as they are also investment real estate brokers. It's one stop shopping for a stronger and more secure financial future!