Thursday, February 26, 2009

Prepare for Making Good Investments with REITs

Want Lucky Real Estate Investments? Be Prepared!

Many people are always wishing they could be 'lucky'. They desperately want a way to be able to know the right time and place to put their money to see great profits. What they don't understand is investing is nothing like the luck of winning a lottery or hitting the jackpot on a Vegas slot machine. Luck takes a lot more work than that.

“I feel that luck is preparation meeting opportunity.”

- Oprah Winfrey

This one quote may be the best example of how investors can 'get lucky' it's not about just a stroke of luck hitting, you have to have done your research and be ready for it.

When it comes to real estate investing, that means you have to have done your research, know what's out there, how it has performed in the past and then have funds to be able to add smart investments to your portfolio.

Kinds of Real Estate Investing

There are two options in the real estate investment market. The first is to purchase real estate outright and own the land. This often is not something a lot of people want to do, as it can be a very costly way to go. Instead, many people prefer the idea of being a part of something that lets them have their hands in real estate without having to buy, sell and maintain the properties themselves.

REITs may be the answer. REITs are Real Estate Investment Trusts. These trusts are a way to fund real estate development or real estate construction groups that will then do all the work of building, buying and maintaining the property while you can instead just reap the rewards.

REITs in the United States must return 90% or more of their profits to their shareholders in the form of dividends making this a wise investment avenue.

Doing the Right Research

Before you start purchasing any sort of investment, you should do your research. This holds true with REITs as well as any other stock, bond or mutual fund you may be considering.

Begin by going to Here you will be able to educate yourself on REITs as well as have access to all the research you need to get a good overview of some of the available REITs in the country, and around the world, and how they have been performing.

As you go through the options, you will likely find some REITs that seem more appropriate to you than others. You can mark these and then will know just what they are when you are ready to buy.

When To Buy

Frankly, this is a great time to be researching and preparing to buy REITs and here's why. The economy has taken a drop in the past year. Everything from lending to real estate has had a hard time and seen major drops in their respective investments.

With them at a low now, and the market starting to cool and level out, that means that things will soon go up again. REITs are at a low and purchasing them now means you are in on the investment at the low end with plenty of time for them to go back up.

Wednesday, February 25, 2009

Consistent Returns 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!