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I am extremely excited to announce my new e-book, SOLID STOCK SELECTION is now available !! Click here to find out more.
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5/28/06 REIT's This week’s letter is on
Real Estate Investment Trusts (REIT’s) REIT’s have been a hot topic for the
past couple of years due to the red hot real estate market. Many folks don’t
want to get involved with actually purchasing buildings and becaoming landlords
due to either the lack if liquidity or the perceived hassles of maintenance.
There are valid points to both of these objections, although there are ways
around them as well. I don’t want to get into the debate of buying properties
vs. the REIT option, but just to explain the REIT. A REIT is a security that
sells like a stock on the open market. It has its’ own symbol and can be bought
and sold just like a stock. (Entering REIT on a search engine such as
“Ask” or “Google” will get you some REITs
to explore.) You can also invest in a
mutual fund targeting real estate investing to minimize risk. REITs are available specializing in a wide range of real estate. Commercial holdings and residential holdings are just two areas of investment, and those can be broken down considerably. Thinking of just commercial investment, you can have strip malls, office buildings or warehouses, just to name a few. In residential holdings generally you might think of single family homes, but apartment complexes, duplexes or condos are also options. Finding a REIT that contains solid returns on your money is very important, although some advisors would suggest stability over return. With fluctuating real estate prices, that is something you need to consider. Another aspect of REITs is
the DRIP (dividened re-investment plan.) That would be to increase your
investment, rather than looking to have income. Again, it really depends on
what you want your investment to do for you. Are you looking for an income, or
are you trying to build your investment? If you are looking to build, you
definitely want a REIT with a DRIP option. The management of any REIT really determines how the REIT investment earns or grows for you, so you want to make sure that any REIT you invest in has a solid management team behind it. Be sure to do your due diligence and ascertain the credibility of the firm before putting your money to work. Thanks and solid investing
to all, Rob
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Want a scholarship into the Millionaire Mind Intensive worth $2590? http://www.secretsofthemillionairemind.com The columns, articles, message board posts and/or any other features provided on Wealth Training Source are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author’s own and there is no implied endorsement by Robert Britt of any advice or trading strategy copyright Robert E. Britt 2006 |
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