Real Estate Investment Trust: Be a part of the party
Real estate is a big business and everyone gives the impression to
want to invest in real estate. You keep hearing a lot of stories
about how people made a quick buck by investing in real estate.
There are stories about people who made $50000 in a fortnight by
making the right kind of investment in real estate. Every now and
then, newspapers keep coming up with statistics about the
appreciation in the real estate prices. There seems a mad rush for
investing in real estate (and this gets even bigger when the
mortgage interest rates are falling). However, not everyone has the
time, money and expertise to be able to profitably invest in real
estate. So what does one do? Is there any other option?
Yes, there is a different Real Estate Investment Trust. Real Estate
Investment Trust is an organization that invests in real estate as a
full fledged business. By investing in a Real Estate Investment
Trust, you can become part of the real estate investment party and
enjoy profits (of course, the assumption here is that the Real
Estate Investment Trust is good and professionally managed).
Investing in Real Estate Investment Trust is incredibly easy too.
You can just buy Real Estate Investment Trust shares which trade on
all major exchanges. There are certain laws governing the Real
Estate Investment Trusts that help them avoiding the tax at
corporate levels e.g. it is mandated that Real Estate Investment
Trustís portfolio has 75 percent of investment in real estate.
Moreover, 75% of the income of Real Estate Investment Trust must be
from rents or mortgage interest. There are various types of Real
Estate Investment Trusts. Some Real Estate Investment Trusts own
properties themselves and hence feed on the rental income from those
properties. Some others indulge in providing only mortgage loans or
go for mortgage backed securities. Then there are Real Estate
Investment Trusts which do both i.e. rental focused investments and
mortgage based investments.
There are numerous Real Estate Investment Trusts operating in the
market and a lot of these Real Estate Investment Trusts are doing
good business. By investing in Real Estate Investment Trust you are
basically investing in real estate without actually buying a
property yourself. This is one easy way of investing in real estate
(and much safer too). You must surely evaluate this option for your
real estate investments.
ABOUT THE AUTHOR
Bob Schwartz, is a Certified Residential
Specialist, CA licensed real estate broker with
has over 27 years of residential real estate experience, authored a
number of published articles and served as an expert witness for
San Diego lawyers. You can contact
Bob via e-mail at email@example.com or visit his highly popular
San Diego real estate website at:
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