Friday, May 22, 2009

Getting to Know Self Storage REITs

As you are on the hunt for various types of investments, you may have come across real estate investment trusts or REITs and real estate mutual funds in your studies. REITs are investing options that offer all of the best of what is on Wall Street, at least in the real estate sector, without some of the downfalls.

For the most part you can think of REITs as portfolios that are chock full of various real estate interests. From the construction to management side of things, there are REITs that focus on all areas of real estate.

Many people like investing in real estate, because they know that since real estate is backed by a tangible piece of property, these are much more secure investing options. But there is more to know than the fact that you want to invest in REITs.

What kind of REIT do you want to invest in? One area you may want to take a look at is self-storage REITs.

Self-storage REITs are those that are filled with interests that relate to the self-storage industry. You know you have seen self-storage units all over the place as you drive around town, but you may have never considered just how big of a business these are.

While you may think of self-storage units just as a place where people put their junk when they run out of room at home, there are many more uses of these facilities. For example, you may not have known that there are a lot of self-storage units that are specifically used by corporate entities for their storage needs. These can be big money units.

Construction

The first part of the self-storage industry that you can invest in is the construction arena. This is the type of portfolio that is filled with everything related to constructing self-storage units. From literally getting the supplies to build the property to acquiring the land to put it on, these interests are all together.

Management

The other option is to put your money into self-storage REITs that focus on the management side of things. Once self-storage units are built, they have to have someone keep them occupied, keep them up, and collect the monthly rent for the units. This is where a management company comes in. Management companies oversee the day-to-day processes of the system.

Getting in On These REITs

Once you know this is the type of REIT you want to buy, how do you choose the best way to get into this type of investment and see your money grow? The smartest way is to work with a broker that specializes in REITs and understands this investing market. This is when you will want to turn to REITBuyer.com. REITBuyer.com is the first and only online brokerage that specializes in real estate investment trusts and real estate mutual funds. In addition to giving you a way to buy and sell your REITs, they will also make sure you are up to date with all the information that will be impacting your investments so you can make wiser decisions.

This article was written by Earl E. Bird, III, spokes person for the REIT Buyer.com, a full service online information resource dedicated to assisting investors who are interested in learning more about Real Estate Investment Trusts (REITs), Real Estate Mutual Funds and how to invest in them. Visit http://stockmarketclosing.blogspot.com to learn more.