Friday, February 27, 2009

Smart Investment Decisions: Investing in REITs

Real Estate Investment Trust – Building Your Bank Account

Have you ever wished that you could just make the right investments to the point where you could sit back and watch them grow? Perhaps you are not doing the right things with your money.

Many people who are looking for a long-term way to see constant increases on their investments choose to look into the REIT market as a way of seeing their money go further.

REITs are real estate investment trusts. In many cases, investors purchase REITs then sit back and let the monthly dividend check come in. From time to time they are able to purchase more shares and then watch larger divided checks come in.

The reason many people like REITs is that for the most part they are long-term investment options that are strong and stable. Since they are based on real estate holdings, and property always has value, they are a wise investment choice.

In the short term, this is a nice way to see a little money grow in your account from month to month. In the long term, if you play things right, it could end up meaning a lot of money down the road to the point where you have enough to live off of.

Having enough to live off of doesn’t happen over night. So, you need to start investing now to allow that little bundle of money time to grow into a major nest egg.

Begin by getting to know REITs. You should always have a good grounding on any type of investment that you are thinking of putting your money into. After all this is your hard earned cash you are putting into someone else's hands. Make sure you know what they are going to do with it and that you are confident they are going to take good care of it.

While you could search all over for the information you need, it's easier to do one stop shopping at They are an investing real estate broker that also has a website that is meant to be the place to get all the information you need on the REIT market.

If you have never worked with REITs before, you can begin with the basic education on what REITs are and how they work. Then you can progress into the research section that will help you find REITs in your area of interest and find out how they have been doing as well as any analysis of those REITs and what they should be doing for the future.

When you're ready to make a purchase, you can also use the website to buy and sell your REITs and keep track of your portfolio.

Many people want financial freedom to happen overnight. It doesn't. It takes time, smart investments and smart decisions throughout the lifetime of those investments. But the important thing is to get started because the sooner you do the sooner those long term investments can get to work for you.

Buy REITs: Real Estate Investment Trusts as a Way to Save Money

Real Estate as A Savings Plan

Are you one of those people who love the idea of putting money away to make sure you have it if you need it down the road, but never really gets around to it? Perhaps you have a tough time just leaving the money in the bank and when you see something that looks like it would be nice to have you cave in and make a purchase. Either that or you look at the low interest that is coming in from banks these days and think 'what's the use?' as you're not even making interest that will meet inflation.

If this sounds like you, you may need to look at another way to save your money and a REIT may be the answer. A REIT is a real estate investment trust. This is essentially a mutual fund for real estate that will be used to buy, build or manage real estate ventures.

Those who are in REITs purchase shares, just like you would any stock, mutual funds or commodities on the stock market and allow that money to grow. In this case the growth comes from the lease, rent or mortgage insurance paid to the fund. The average return on REITs is 6-10%, which is triple, or quadruple of what most savings plans will net you in the bank.

Additionally, for the most part, REITs are pretty strong investments. Most of them are based on tangible pieces of property that are not going anywhere, so while values may fluctuate, they will still have some value.

Unlike buying real pieces of property, which means a lot of money, paperwork, and quite the hassle finding a buyer if you want to sell, REITs will allow you to instead sell your shares just like you would any other stock, mutual fund or commodities on the stock market.

If you're smart about this type of investment, you will treat it as a savings plan. As you get the money to purchase shares, make a purchase and then allow your annual dividends to be rolled back into purchase more shares. If you keep making your purchases on a regular time frame and let them grow. You may be surprised at just how much it grows for you to have down the road when you need it.

With the recent down market, there's no time like the present to buy. In the immortal words of multi-millionaire T. Harv. Eker, "Don't wait to buy real estate, buy real estate and wait."

If you have never heard of REITs or worked with them before, don't let that be a deterrent to you. Simply by logging on to a website such as you will be able to learn everything you need to know to be investing like a pro in no time and start that savings plan.

If you're completely new to this, begin with the basics. Make your way through the website learning all you need to know about REITs and then choose the ones that are best for you. The best part about is that you can then make your purchase on their website, as they are a full service investing real estate broker, and watch your portfolio all in the same place.