Friday, May 22, 2009

What To Know Before You Invest In REITs

If you are considering putting your money into the real estate investing market, you may be looking at purchasing into REITs instead of purchasing real estate outright.

There has been a lot of talk about REITs in recent years. They are great investments that many get involved in as a way to have their small piece of the real estate pie, while not having to purchase property and deal with all of the hassle that goes with that route. But what do you really know about REITs?

Before you invest, you owe it to yourself to know as much as you can about the investment you are going to put your money into. After all, we are talking about taking your hard earned money and putting it on the line. Don’t you want to know what the chances are you will see that money grow rather than go away?

Before you begin your investment into REITs you need to get to know the history of a REIT. Take that REIT name and look it up. There are plenty of places to do this, but if you want to save yourself a little time, try using the same place you will be buying and watching your portfolio. In the world of REITs the place for this is is the first and only online brokerage that specializes in REITs and real estate mutual funds.

Look up the history of the REIT once you are online. You also want to see if you can find a prospectus from the REIT. If you can find a prospectus you will see what the REIT has done over the past year. If you are trying to figure out what the future holds, you have to take a look at the past.

In the case of REITs and real estate mutual funds this annual report or prospectus will let you know just what has happened to the portfolio over the past year. It will give you a look at the percentage of gain or loss that it has seen and show you what the strengths and weaknesses of the portfolio are.

From here you need to take that information and compare it to the rest of the market. After all, over the past year a lot of investments have lost ground because of the economy. But that does not mean they are bad investments. So if you have found a REIT that has only made 1-2 percent in the past year, that may be a great thing if all the others have lost 2, 4, or more percent over the same time period.

A final thing you may want to look at when considering which REIT to invest in is who is in charge of the investment. All REITs have people who manage them. Some financial managers are better than others. So look up who is in charge, and their track record to get an idea of how well they will be taking care of your investing dollars.

This article was written by Earl E. Bird, spokes person for the, 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

Tuesday, March 10, 2009

The Recent Stock Market Closings on the Downward Slide Have You Concerned? Investigate 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!

What to Know Before Purchasing a REIT

Research Your Potential Investments

If you have been thinking about purchasing a REIT (Real Estate Investment Trust), make sure you know what you are getting into before you make the purchase. A lot of people read up a bit on the various investments they are considering and then make purchases because they like the way something sounds.

With stock, bond and mutual fund purchases this may be a normal thing, but when you are doing real estate investing you should do more research, and it's easy.

Location Location Location

The first thing you should get to know when you are considering a REIT is where it is located. What is the market like in that area? This can be easily found with a little Internet research these days. Find out what complexes, properties, malls or industrial parks are included in the REIT you are considering buying and look up those areas. The more you know about the land and building value of the property you are investing in, the more you can know you are making a wise investment decision that has nowhere to go but up.


If you are investing in a new real estate development REIT this is not as much of an option, as you will not necessarily know how the project will go once construction is complete, but if you are considering purchasing shares in an established REIT, take a look at their history. Have they shown stability in the recent months or years? If they have, this is a good sign they will continue to do so.

One thing you should keep in mind on this front is that all markets, real estate included, have had a tough time over the past year or so, so if their strength only wavered during that time, you should not be too alarmed.


The bottom line here is that you want to make money. Before you get into a REIT, make sure it is one that will be making you money from the beginning and for years to come. Some REITs make more than others and the key to finding ones that will make you a better return is looking for those that are fully booked with tenants or are in a growing area that will not have a problem filling all the leases so you know the profits will start rolling in.

Doing this research may sound daunting, but it’s not if you know where to go. For example, is a website that offers all the information you need about the REIT market. You can do your research, look at past REIT investments, see comparisons of the REITs to the stock market and really get a better understanding of the investments you are considering making.

Once you have become knowledgeable and know which REITs you want to invest in, you then only have to go as far as a few mouse clicks to purchase them through, as they are a full service investing real estate broker. Then sit back and watch your work pay off.