Sunday, January 31, 2010

All about REITs – Real Estate Investment Trusts

Learn about REITs: Have you ever wished that you could just make the right investments to the point where you could sit back and watch them grow? Perhaps you are not doing the right things with your money.

Many people who are looking for a long-term way to see constant increases on their investments choose to look into the REIT market as a way of seeing their money go further.

REITs are real estate investment trusts. In many cases, investors purchase REITs then sit back and let the monthly dividend check come in. From time to time they are able to purchase more shares and then watch larger divided checks come in.

The reason many people like REITs is that for the most part they are long-term investment options that are strong and stable. Since they are based on real estate holdings, and property always has value, they are a wise investment choice.

In the short term, this is a nice way to see a little money grow in your account from month to month. In the long term, if you play things right, it could end up meaning a lot of money down the road to the point where you have enough to live off of.

Having enough to live off of doesn’t happen over night. So, you need to start investing now to allow that little bundle of money time to grow into a major nest egg.

Begin by getting to know REITs. You should always have a good grounding on any type of investment that you are thinking of putting your money into. After all this is your hard earned cash you are putting into someone else's hands. Make sure you know what they are going to do with it and that you are confident they are going to take good care of it.

While you could search all over for the information you need, it's easier to do one stop shopping at They are an investing real estate broker that also has a website that is meant to be the place to get all the information you need on the REIT market.

If you have never worked with REITs before, you can begin with the basic education on what REITs are and how they work. Then you can progress into the research section that will help you find REITs in your area of interest and find out how they have been doing as well as any analysis of those REITs and what they should be doing for the future.

When you're ready to make a purchase, you can also use the website to buy and sell your REITs and keep track of your portfolio.

Many people want financial freedom to happen overnight. It doesn't. It takes time, smart investments and smart decisions throughout the lifetime of those investments. But the important thing is to get started because the sooner you do the sooner those long term investments can get to work for you.

Wednesday, December 9, 2009

REITs are Liquid Real Estate Investments

When you think about investing in real estate, you probably think that means investing money and being without it for a long time. This is to be expected as most people think of real estate investing as purchasing a home or pieces of land. The loans for these purchases often take many years to repay.

There is a better way. The difference between real estate investing and real estate purchasing is the liquidity; or ability to have your money when you need it.

Here's a look at the difference. In real estate purchasing, you are buying properties and then you are responsible for managing and maintaining them.

On the other hand REITs are real estate investments. They are purchased in shares, just like mutual funds. If you need some liquid cash or just no longer want to be a part of a REIT, you simply sell your shares as you would with any other stock or mutual fund investment.

In many respects, REITs offer the same flexibility as any of the other markets, while at the same time offering you the chance for a longer-term secured investment.

What I mean by secured investment is that for the most part real estate always has some value. While the value may fluctuate, it is a physical asset that will retain some value over the long term. In other stocks and mutual funds, if the company that you are purchasing shares from goes out of business, you can lose everything. In the case of real estate investing, there is always an asset with worth involved.

Many people steer away from REITs because they are not a ‘get rich quick’ investment. Though that is true, REITs generate constant regular returns in dividends without the big spikes. With that said, think about what else is in your portfolio. If you have other stocks and mutual funds in your portfolio adding real estate investments will give you a more stable backbone to base your investment profile on.

There is also another way to add diversity to our real estate investment trusts. Instead of just owning commercial, residential or US based REITs, you can purchase shares in a number of different investment trusts across the world and across all markets.

When you're ready to jump onboard and diversify your portfolio with the addition of a few REITs, take the time to do some research so you understand what you want and how to get it. has all the information you need to get started investing in REITs. The research and analysis of the REITs has been

REITs: Real Estate Investments with Real Profits

Many investors say they want two things in their investments – a nice return on their investment and security. They want reassurance that their money will not be here today and gone tomorrow. When it comes to the stock market or purchasing mutual funds, those are two things that cannot be guaranteed. When you purchase stocks, you never know if the company is going to have a bad quarter, losing a large part of your investment or if they are going to fail altogether, losing all of your money.

The only place you can really be sure that you will not lose everything when the economy is down is with real estate.

Even if the bottom falls out of the real estate market, your real estate investments are tangible assets. Real estate will always have some value; therefore, you cannot lose everything. During times of declining values if you hold on to your investment you will see dividends come in again like nothing ever happened.

There are two ways to invest in real estate. The first is to make a real estate purchase. For the most part this means having a lot of cash available to buy a property. Most average people do not have this kind of money.

The easier way to invest is by purchasing REITs or real estate mutual funds. By purchasing a REIT you are a shareholder in property ownership. This means you will purchase shares that go into a collective fund that is used to purchase and maintain income producing property. These properties can include single family residents, attached apartments or condos and large commercial developments.

With REITs the real estate management group makes a profit which is distributed to shareholders in the form of dividends. Laws dictate that at least 90 percent of the profits from a REIT must be returned to the shareholders, so barring a major downturn in the economy you know you will get a return on your investment year after year.

The remaining 10 percent of the profit from the REIT is used for management of the properties or possible improvements that will increase your profit potential.

Unlike traditional real estate investments, REITs are liquid; if you need to pull some of your money out it is as easy as selling a few shares instead of having to go to the trouble of selling the property and managing it until you finally close the deal.

Getting into the REIT market is quite simple. Just go to where you can learn more about REITs and research the REITs out there. You can also make your purchases with the real estate investment brokers. 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.

Learn about REITs The Real Estate Mutual Funds Worth Having

REITs are Real Estate Mutual Funds. If you are compiling your investment portfolio, you probably have several different investment avenues that you are considering. Do you prefer stocks or mutual funds? Local or international? And have you considered real estate?

When asked if they would consider investing in real estate many people picture themselves having to come up with a large sum of money to purchase a piece of property. Most people just don’t have this much cash available. They may have a few hundred or thousand dollars to invest, but not enough to pay cash for a property.

One may also fear the hassle of purchasing and managing property. Why would anyone invest in something that is so much work?

There is a way to invest in real estate without all of the hassle of purchasing and managing the property. It's called a real estate investment fund or REIT. A REIT is essentially like a real estate mutual fund.

Instead of buying a piece of property, you are buying shares in a real estate management group that will then purchase and maintain a property.

Here is how you make a profit from REITs. With REITs, 90% of the profit must be paid to shareholders in the form of dividends.

Essentially, REITs are the best of all worlds. Not only are they secure real estate investment options, but also they are also just as liquid as the stocks and bonds you are familiar with.

Most financial advisors recommend having at least 10% of your portfolio be associated with real estate. The reason for this is that those investments are more secure than other stocks and mutual funds and just a swing of the market can wipe you out on all of the other investments, while the real estate should hold up through the tough times. This gives you a hedge for those other, more volatile investments.

Getting involved with REITs is also a lot easier than you would think. Begin with a real estate broker like By working with, you will be able to start at the beginning and get everything you need.

Begin by doing your research. They have articles and research tools that will help you investigate the REITs you are interested in so you can get a feel for which ones best fit your portfolio.

When you are ready to buy, they can take care of that as well, as they are a complete real estate broker and can handle your investments in a professional manner.

Finally, once you have made the purchase, use their tools and analysis options to keep an eye on how your investments are doing and size them up to the rest of the market. 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.

Tuesday, October 6, 2009

The Truth about REITs: About Real Estate Investment Trusts

REITs are corporations that primarily own and usually operate real estate that generates revenue, including hotels, commercial office buildings, rental homes, apartment complexes, etc… REITs may also finance real estate and many have their shares traded on major stock exchanges.

Here are the answers to commonly asked questions about REITs

What is required to be considered a REIT?

To qualify as a REIT, a corporation must comply with the provisions of the Internal Revenue Code. According to the Tax Code, a REIT is required to:

• Pay annually at least 90 percent of its taxable income I the form of shareholder dividends
• Be managed by a board of directors or trustees
• Have a minimum of 100 shareholders
• Invest at least 75 percent of its total assets in real estate assets
• Have shares that are transferable
• Have no more than 50 percent of its shares held by five or fewer individuals during the last half of the taxable year
• Derive at least 75 percent of its gross income from rents, from real property or interest on mortgages financing real property
• Have no more than 20 percent of its assets consist of stocks in taxable REIT subsidiaries
• Be an entity that is taxable as a corporation

Why were REITs created?

REITs allow individuals and families to be involved in large-scale investment opportunity. United States Congress established REITs in the 1960s to give less established investors the opportunity to invest in large-scale, income producing real estate. Congress determined purchasing equity – as it is done with other industries – would be the best way to give average investors the chance to purchase large scale commercial real estate.

Access to these real estate investment opportunities was limited to wealthy individuals and institutions before Congress became involved.

Are there different types of REITs

Yes, there are many different types of REITs with shares being traded on major stock exchanges daily, which make them different from traditional real estate investing.

REITs are classified into three separate categories:

Equity REITs own and operate revenue generating real estate. Properties are purchased or developed to operate and keep in portfolio, not for resale. They are held as long term investments.

Mortgage REITs lend money to real estate owners or extend their credit by purchasing loans or mortgage-back securities. They generate revenue based upon the interest in mortgage loans and are considered to be a good speculative if interest rats are predicted to decrease.

Hybrid REITs owns properties as well as make loans to real estate owners and property managers.

Are REITs considered to be good investments?

Yes, REITs are considered to be a good investment. REITs are a great investment that diversifies your portfolio and reduces risk.

Their dividends are usually high and there is great potential for moderate, long term appreciation. Compared to other investment options, over time the return on REIT stocks produce slightly less return than a high risk investment, but more than a low risk bond.

REIT dividends come from the rent paid by those who occupy the REITs properties, which is considered to be a fairly stable revenue stream. Annually REITs shareholders receive at least 90 percent of their taxable income, sometimes, paid out monthly. Due to the fact rental rates tend to increase during periods of inflation, REIT dividends are usually protected from the negative effect of rising prices. Other benefits or REITs include:

• Liquidity: Shares of publicly traded REITs are easily converted into cash because they are traded on Wall Street
• Professional Management: The managers of your REITs are trained and experienced real estate professionals
• Oversight: Independent directors of the REIT, independent analysts, independent auditors, and the business and financial media watch over a public traded REITs financial reporting regularly. Such oversight provides investors with a comfortable level of protection because multiple sources are looking at the REITs financial condition
• Disclosure Obligations: REITs whose securities are registered with the Securities and Exchange Commission are required to make regular disclosures, including quarterly as well as annual financial reports.

How are REIT dividends handled for tax purposes?

Dividend distributions for tax purposes are allocated to ordinary income, capital gains and return of capital, each of which may be taxed at a different rate.

What types of people tend to invest in REITs?

All types of investors find REITs to be an excellent investment to have in their portfolio. They include new investors with no previous investment experience; intermediate investors with some experience; highly experienced investors; exchange traded funds; pension funds; endowments; foundations; insurance companies; and bank trust departments.

What should I keep in mind when investing in a REIT?

Corporations that demonstrate consistent earnings and dividend growth are rewarded by the marked with higher price-earnings multiples. Keep these factors in mind when investing in REITs: the strength of their management team; a demonstrated ability to increase revenue consistently, and an effective operating structure.

Are there any professional groups that advocate on behalf of REITs?

Yes, The National Association of Real Estate Investment Trusts was established as a trade association created to represent US REITs and publicly traded real estate companies. The National Association of Real Estate Investment Trusts is comprised of companies, academics, and industry professionals. The organization’s primary purpose is to advocate for, and help promote, the industry and REITs.

How can I Invest in a REIT?

You can invest in one of many publicly traded REITs located on the major stock exchanges by purchasing shares. The highly specialized experts at can help you make your investment.

As with any publicly traded security, investors can purchase common stock, preferred stock or debt securities. Our real estate investor specialists can help you analyze your financial objectives and recommend the appropriate investment for you. 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.