Wednesday, December 9, 2009

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 REITBuyer.com. By working with REITBuyer.com, 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.

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.

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