Real estate is a big business and everyone seems to want to invest in real estate. You keep hearing a lot of stories about how people made a quick buck by investing in real estate. There are stories about people who made $50000 in a fortnight by making the right kind of investment in real estate. Every now and then, newspapers keep coming up with statistics about the appreciation in the real estate prices. There seems a mad rush for investing in real estate (and this gets even bigger when the mortgage interest rates are falling). However, not everyone has the time, money and expertise to be able to profitably invest in real estate. So what does one do? Is there any other option?
Yes, there is another way of investing in real estate and that is through Real Estate Investment Trust. Real Estate Investment Trust is an organisation that invests in real estate as a full fledged business. By investing in a Real Estate Investment Trust, you can become part of the real estate investment party and enjoy profits (of course, the assumption here is that the Real Estate Investment Trust is good and professionally managed).
Investing in Real Estate Investment Trust is very easy too. You can just buy Real Estate Investment Trust shares which trade on all major exchanges. There are certain laws governing the Real Estate Investment Trusts that help them avoiding the tax at corporate levels e.g. it is mandated that Real Estate Investment Trust’s portfolio has 75 percent of investment in real estate. Moreover, 75% of the income of Real Estate Investment Trust must be from rents or mortgage interest. There are various types of Real Estate Investment Trusts. Some Real Estate Investment Trusts own properties themselves and hence feed on the rental income from those properties. Some others indulge in providing only mortgage loans or go for mortgage backed securities. Then there are Real Estate Investment Trusts which do both i.e. rental focussed investments and mortgage based investments.
There are a number of Real Estate Investment Trusts operating in the market and a lot of these Real Estate Investment Trusts are doing good business. By investing in Real Estate Investment Trust you are basically investing in real estate without actually buying a property yourself. This is one easy way of investing in real estate (and much safer too). You must surely evaluate this option for your real estate investments.
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Help answer the question about real estate
How do you become a real estate developer?Hi, I'm interested in becomming a real estate developer. I have the funding so loans are not a problem. I am not willing to get a degree in it because I honestly feel I will not need it. Plus, I am almost done with a degree in Psychology.
I have looked online for books but cannot find one that is really helpful to me. I can take a few classes in it including General Contracting, but that is it. Finding a mentor has proven difficult because not many people are willing to share what they know.
So does anyone know of any good books or classes that I should take (be specific) so that I can get started. Please answer my question with any references you may have.
Thanks!!
I want to build houses and sell them. I am not looking into 'flipping houses'. Plus, I will be hiring a General Contractor. Basically, it's like I want to build my own house then sell it. Why is that difficult?
About Author
The author is the founder of www.EastLiving.com.sg . Having accumulated a wealth of experience in dealing with thousands of private home buyers and sellers, Stuart Chng and his team, has honed their real estate negotiation skills and a thorough understanding of the needs and psychology of home buyers. Sign up for EastLiving’s daily Singapore Property News at http://blog.eastliving.com.sg .
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whoa!!it looks like a PICTURE!
ur an amazing painter!:D
a REIT is publicly traded and strives for profits and dividends for its stockholders.
a real estate mgmt company may or may not own properties – its function is 3rd party property management. the emphasis on the bottom line is not as great.
It appears that JREITS can only be purchased through the Tokyo Stock Exchange. However, you may want to look at ORIX Corp. (symbol is IX) traded on the New York Stock Exchange.
Great talent Der Mann.
Nice work, you did pretty good.
B
It is possible for trusts to own single family homes but not neccesarily keep them in inventory. Each state has its own rules regarding trusts and you will need to seek legal help to understand yours. Flipping properties with trust money (if allowed by your state) is a great idea but dont try it if you are just starting out in RE. get your feet wet first or work with a reputable investment company
$6,089 X .078 = $474.94 Yearly interest
$6,089 X .074 = $456.68
$6,089 X .075 = $450.59
total yearly interest = $1,382.21
quarterly interest = $345.55
Very nice!!
Yes, lots. I would not put all 20k into one REIT–too much risk. Depending on what your total investment portfolio looks like it might be a bad idea to put all 20k into REITs.
REITs come in quit a few different flavors, just like ice cream. There are apartment REITs–EQR is a very large one. Pays a dividend of about 5.1% and sells at about 36-37 a share. Another is CPT about 1/3 the size of EQR. Pays a dividend of about 5.8% and sells at about 48-49 a share.
Office building REITs–OFC, DRE, and CLI are a few of those. Dividends from 4.3% to 8.4%
Shopping center REITs–BDN is one I think. Dividend above 9%. One of its largest customers is bankrupt though.
Health care REITs–NHI, HCP are a couple
There are several other varieties also including hotel REITs, and storage building REITs. The storage building REITs might be really in demand of late with all the forclosures. Check out PSA
You’re really good man. You’ve got excellent talent.
Brilliant Willy, Just Brilliant =D
Bonds, Master limited partnerships. Depending on how much money you have you can also invest in oil and gas exploration. You can also do hard money loans. The last two have soms significant risks
Excellent work. Pleasure to watch. Perfect music
))
Incredible! He looks so life like. Just amazing…and what a beautiful subject
Haven't you heard real estate is dropping. And it will continue to drop as all of these Adjustable Rate Mortgages begin to come off of their initial period and have to be refinanced. That is the worst place to invest your money. Money magazine has rated the top 70 mutual funds. Try one of those. http://money.cnn.com/magazines/moneymag/bestfunds/2007/actively.html
This question is what type of REIT? Resorts, Retail, Student Housing, Mixed Use(An Allocation Of All Or Most of The REIT Sectors)…..So its not that easy to answer until you define what type. Office REIT'sS may suffer, as vacancies are down, but they are usally backed by long term leases. Universities are at record enrollment, so that sector should be recession proof……….Once again, you need to define what you are looking at. PS, I am a fan of REIT'sS.