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When it comes to investing in real estate, people often picture them selves purchasing, owning and managing property. Often, new investors don’t have the funds to purchase large pieces of commercial or residential property, though they may have a few hundred or thousand dollars to invest. Others cringe at the idea of owning real estate and being landlords.
A spokesperson for REITbuyer.com was recently interviewed; he explained how one can invest in real estate without the headache. He explained, “Instead of purchasing the property, one can invest in REITs, which are essentially real estate mutual funds. Instead of buying and managing property, you buy shares in a real estate management group that will purchase and maintain the income producing property and distribute at least 90% of their earnings to shareholders in the form of dividend payments.”
The spokesman went on to explain how REITs are not only secure real estate investment options, but they are also just as liquid as the stocks and bonds that many stock market investors are used to.
When asked if REITs are a secure investment in today’s economy, the representative said, “Most financial advisors recommend having at least 10% of your portfolio associated with real estate. Those investments are more secure than other stocks and mutual funds. While a swing of the market can wipe you out on other investments, real estate will hold up through the tough times.”
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