Friday, March 6, 2009

Take a Look At Another Way to Save Money Buying Real Estate

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.

Wednesday, February 25, 2009

How to Invest in REITs - Real Estate with Proven Returns

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!