About REITs: a Special Profit Structure to Benefit Shareholders

By
Services for Real Estate Pros with Inheritance Capital Group, LLC

Have you always been a fan of real estate as an investment avenue but thought you didn't have the money on hand to be able to be a part of the real estate world. Perhaps you thought the only way to invest in real estate is to save up or leverage yourself and purchase pieces of property. Believe it or not, that is not the only way to be a part of the real estate market. There is a way to get into real estate investing that is just as easy as buying a stock, bond or any of the other offerings on the stock market.

 

Perhaps you have heard of real estate mutual funds? Maybe you haven't heard of real estate investment trusts (REITs). These are two of the ways you can invest in real estate without being bogged by the paperwork and ownership of just a couple of pieces of property.

 

Real estate mutual funds and REITs are investment portfolios that are all related to real estate. Real estate mutual funds can be filled with a number of stocks and bonds related to real estate ventures and businesses. These are just like any other mutual funds, but are specific to the real estate market.

 

REITs are a quite different animal. In the 1960s the government decided that the average Joe should have a chance to get into the real estate market without having to try to purchase property after property. They created a new investment option called a REIT. A REIT is a portfolio that generally buys, builds or manages real estate interests. This could be a residential REIT that is filled with shares of companies that manage apartment complexes or help to fund residential home loans. Another option is that it is a commercial REIT that focuses on properties that will become strip malls and other business entities as well as companies that help finance those types of purchases.

 

What makes REITs special is the profit structure. When you are in a REIT, 90% of the profit annually has to be returned to shareholders. If you put this money back into your investments, you can see your money grow exponentially.

 

When you purchase shares of a REIT or real estate mutual fund you are essentially buying into all the stocks in this market. Just one share of a REIT or real estate investment fund can give you a diversified portfolio of shares in your market and a stake in real estate without having to deal with all the paperwork and nightmares that go with owning a property yourself.

 

When it comes time to select and purchase REITs and real estate mutual funds, make sure to go with a company that understands this market. REITBuyer.com is the first and only online brokerage that specializes in REITs and real estate mutual funds and lets you get the information you need to make a wise purchase as well as make that purchase and monitor your portfolio all in one place.

 

Really it is the best of all worlds. You get to enjoy owning real estate interests while someone else does all the work to maintain them.

 

REITbuyer.com, a site dedicated to educating Real Estate Investors on how to invest in Real Estate Mutual Funds to diversify their investing portfolio.  Learn more at http://www.reitbuyer.com

 

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