Thursday, February 26, 2009
No Need to Just Wish You Were Lucky With REITs
Want Lucky Real Estate Investments? Be Prepared!
Many people are always wishing they could be 'lucky'. They desperately want a way to be able to know the right time and place to put their money to see great profits. What they don't understand is investing is nothing like the luck of winning a lottery or hitting the jackpot on a Vegas slot machine. Luck takes a lot more work than that.
“I feel that luck is preparation meeting opportunity.”
- Oprah Winfrey
This one quote may be the best example of how investors can 'get lucky' it's not about just a stroke of luck hitting, you have to have done your research and be ready for it.
When it comes to real estate investing, that means you have to have done your research, know what's out there, how it has performed in the past and then have funds to be able to add smart investments to your portfolio.
Kinds of Real Estate Investing
There are two options in the real estate investment market. The first is to purchase real estate outright and own the land. This often is not something a lot of people want to do, as it can be a very costly way to go. Instead, many people prefer the idea of being a part of something that lets them have their hands in real estate without having to buy, sell and maintain the properties themselves.
REITs may be the answer. REITs are Real Estate Investment Trusts. These trusts are a way to fund real estate development or real estate construction groups that will then do all the work of building, buying and maintaining the property while you can instead just reap the rewards.
REITs in the United States must return 90% or more of their profits to their shareholders in the form of dividends making this a wise investment avenue.
Doing the Right Research
Before you start purchasing any sort of investment, you should do your research. This holds true with REITs as well as any other stock, bond or mutual fund you may be considering.
Begin by going to REITBuyer.com. Here you will be able to educate yourself on REITs as well as have access to all the research you need to get a good overview of some of the available REITs in the country, and around the world, and how they have been performing.
As you go through the options, you will likely find some REITs that seem more appropriate to you than others. You can mark these and then will know just what they are when you are ready to buy.
When To Buy
Frankly, this is a great time to be researching and preparing to buy REITs and here's why. The economy has taken a drop in the past year. Everything from lending to real estate has had a hard time and seen major drops in their respective investments.
With them at a low now, and the market starting to cool and level out, that means that things will soon go up again. REITs are at a low and purchasing them now means you are in on the investment at the low end with plenty of time for them to go back up.