Sunday, March 8, 2009

A Different Type of Asset to Manage - REITs

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.

Wednesday, February 25, 2009

Invest in REITS for Peace of Mind

Real Estate Investment Trust – Building Your Bank Account

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 REITBuyer.com. 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 REITBuyer.com 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.