Commonly asked questions about REITs and Real Estate Mutual Funds are answered during a recent interview
Phoenix, AZ - REITbuyer.com is a newly launched site for investors to get information about real estate investment trusts (REITs). REITs were established by US Congress in the 1960s to allow individuals and families to be involved in large-scale investment opportunities. "Access to these investment opportunities was limited to wealthy individuals and institutions before Congress became involved," said Earl E Bird, III, spokesperson for REITbuyer.com.
The first question asked was "What are REITs?" "Real Estate Investment Trusts (REITs) are corporations that primarily own and usually operate income-producing real estate including hotels, commercial office buildings, rental homes, apartment complexes, etc...REITs may also finance real estate and many have their shares traded on major stock exchanges," explained Earl.
Earl also explained the requirements a corporation must comply with in order to be considered a REIT. "According to the provisions of the Internal Revenue Tax Code, a REIT is required to pay, annually, at least 90% of its taxable income in the form of shareholder dividends. A REIT must be managed by a board of directors or trustees and have a minimum of 100 shareholders. They must invest at least 75% of the REIT's total assets in real estate assets and their shares must be fully transferable.
Earl also discussed the different types of REITs available today. "Right now, there are nearly 200 publicly traded REITs in the US according to the National Association of Real Estate Investment Trusts with a combined market value of nearly $400 Billion. Shares of REITs are being traded on major stock exchanges daily, which make them different from traditional real estate."
REITs are considered to be a good investment for diversifying your portfolio and reducing financial risk. REITs dividends come from the rent paid by those who occupy the REITs properties, which is considered to be a fairly stable revenue stream. Because rental rates tend to increase during periods of inflation, REIT dividends are usually protected from the negative effect of rising prices. Read more on Earl's REITs blog at http://cramerstock.blogspot.com/
REITbuyer.com is an online brokerage information site specializing In REITs and Real Estate Mutual Funds - The World's first and only site dedicated to REITs Real Estate Mutual Funds. This is a place for the small investor to own a piece of world class real estate.
The above press release is not the opinion of SaveDaily. Any advice given is option of writer. Savedaily is not endorsing this press release. http://www.reitbuyer.com/ is not broker or dealer. All investments are risky by nature and professional advice should be sought.