Thursday, March 12, 2009

Would you Like to Own Equity Residential Properties for Its Profits: Investigagte REITs

Making Money off Multi-Family Apartments

If you have ever thought of real estate as an investment you like a lot more than stock trading, you may wonder how you can fund your own way to make money off of real estate instead of having to go the traditional stock and mutual funds route. Real estate investment trusts may be the answer.

Consider if you were able to own an apartment, rent it out and then keep the profits that you make? That would be a nice investment? What if you owned a complete apartment complex? There's a chance to make a lot of money there!

But now you're thinking there is no way you would be able to afford the purchase of a single unit to rent out much less a whole multi-family apartment complex.

But there is a way that you may be able to still get a piece of this pie within your budget through REITs. REITs are real estate investment trusts. These are like the mutual funds of real estate where investors put money into a fund that is used to purchase properties and then manage and maintain them.

The way you will make a profit is through the money that comes in from those units. The rent that comes in from the units will be used to pay for operating expenses and then much of the profits will be given back to the investors and shareholders. US law states that at least 90% of the profits must be given back to the shareholders each year.

One place a lot of people see as a possibility to make money is through multi-family apartments. The logic here is if one rental unit would make a nice amount of money, wouldn't more rental units mean even more money? The answer is yes, they would!

Most people could not afford to even consider purchasing an apartment complex and being a landlord to make those profits because it's too costly. This is where REIT's come in. By being a shareholder in a REIT you will be able to be a part owner in those multi-apartment buildings you were thinking of and reap the rewards.

Getting involved in REIT buying is easy. When you are ready to learn more about this type of trading and investment, go to REITBuyer.com. Here you will be able to find all the education and information you need to make informed decisions about purchasing and investing in REITs.

With the research tools available on their website you will also be able to find out which REITs have the investments you want, multi-family apartments, so you can start seeing those fast returns.

Before you buy, you may want to do your homework. With REITBuyer.com you will be able to look up the REITs, their past, and get an idea of where they may be going in the future so you buy wisely.

Then when you're ready to buy you can make the purchase on the website and watch your investment grow.

Get Involved in Business Real Estate Profits - Like Equity Residential Properties

Many people want to learn how to make the big bucks when it comes to investments. Generally this means knowing how to get into commercial real estate and how to do it right. This is how people like Donald Trump made their fortunes. But are you ready to be the next Donald Trump?

For most people the answer is no. Not because they don’t want to be the next Donald Trump, but because they don't have the cash on hand to get started like Donald does. That's ok. You can start small. One way to start small on commercial real estate is through REITs. A REIT is a real estate investment fund. This is a fund that that works much like a mutual fund but in the area of real estate. You can purchase shares of this fund and then that money is used to purchase, build or maintain properties.

As those properties make a profit, you will get a good percentage return on your investment. By US law, 90% of the profit from a REIT has to be returned to the shareholders in dividends, so if a REIT investment goes well, there could be major earnings.

As you wonder if this is the right way to go for you, why not take on this quote from Will Rogers, "Buy land, they aren't making anymore of it."

That is a very true assessment! There is only so much land to go around and with a growing population, more and more people are going to want a piece of it.

While you may think this only impacts residential properties, if you think a little harder you will see how it could also have an impact on commercial real estate.

While all those people in the growing population will indeed need places to live, they will also need places to shop, have their hair done, buy cars, and for any number of other services that they expect these days. That means commercial ventures that are going to serve this growing population are going to need commercial real estate to work from. If you are a part of a real estate REIT that owns that property you can have a tenant that is paying you profits for years and years to come.

Beginning your venture in to commercial REITs is easy. Start by going to REITBuyer.com. This is a website that focuses specifically on REITs instead of all the other types of investments out there.

Now take a little time to research the REITs that are available. You can look into the portfolio of a REIT to see what type of property is in its holdings. Some are residential and industrial as well as commercial, so if you want just commercial, make sure to weed out the rest.

Next, you should take a little time to see what that REIT has done in the past. See if it has been steady (give or take a few tough market seasons) and if the area where they are located is a good market for future revenue.

If so, it only takes a few steps to purchase the REIT through the site and enjoy your first step into the world of commercial real estate.