Sunday, May 17, 2009

Real Estate Investing Success Is About Information

How much do you read about investing? How much do you keep up with what is happening in the financial institutions where you have your money invested? If you were not overly zealous in your answers to these questions, you may be missing out on a way to see more success in your investing.

Information is what can make or break an investor. Those who keep knowledgeable about what is happening in their investment field and how that may impact their investments, are the ones who know when to buy or sell to make the most profit. Meanwhile, those who just sort of follow along and eventually catch up with what is happening when it's become a part of mainstream news coverage are those who are just on the bandwagon and don’t see as much potential for their investments.

Here's an example of what we mean. Consider a person who watched the real estate happenings of the last year. Many investors cringe at the thought of watching the investing market plummet, but some people, who were keeping a close eye on just what was happening were able to make great money.

When the mortgage crisis happened, all mortgage related stocks went through the floor. But then the government started working on a bail out plan. This time period was one where if you knew when to buy, you could make a lot of money. Those who purchased Fanny Mae and Freddie Mac or some of the bank stocks at the right time were able to buy low, see the stock spike as the government bailout rallied consumer confidence, and cashed in on a tidy sum of money.

Meanwhile, others who had their money in these markets, and didn't see the down time coming just lost their investments and stood staring at their portfolio wondering what happened.

So, when it comes to making money on the market, information is the key to success! So, where do you get that information? Well if you are doing general investing, you can choose any investment news site for the info you may want. But, if you are specializing in the real estate market in real estate investment trusts (REITs) and real estate mutual funds, you don’t want to have to wade through page after page of information that has nothing to do with your investments to find a few nuggets that do. Instead you want to use a site that just has the information you need so you can make wise decisions without wasting your time.

This is where you may want to take a closer look at REITBuyer.com. REITBuyer.com is the first and only online brokerage firm that specializes in real estate investment trusts and real estate mutual funds. Their news and trends sections of the site are focused on the real estate market letting you get the big picture as well as keep your finger on the pulse of what is happening right now. Additionally, when you are ready to buy, they can take you through the process and help you monitor your investments all in the same place.

This article was written by Earl E. Bird, III, spokes person for the REIT Buyer.com, a full service online information resource dedicated to assisting investors who are interested in learning more about Real Estate Investment Trusts (REITs), Real Estate Mutual Funds and how to invest in them. Read more about the Real Estate Stock Market at http://incproperties.blogspot.com

Saturday, March 21, 2009

"Apartments By" the Sea - A Good Time for Real Estate Investment Trusts

If you have been watching all the shifts in the investing markets, you may be a little worried about putting your money into any of them right now. Things have been falling and falling, how do you know where it will be safe to put your cash?

Perhaps it's time to look at some of the other investing options out there like real estate. I am not talking about running around and buying up any extra lots of property you happen to see around you. That comes with a lot of responsibilities and major outlay up front. Not only do you have to have the money to purchase the whole property, but you also have to be able to take care of it and maintain and manage it after the fact. This is a lot to ask for in an investment.

Do you want to own "apartments by" the sea"? Instead, you may want to look into another type of real estate investing, real estate investment trusts. Real estate investment trusts or REITs are funds where you purchase shares of the investment and a real estate management group of real estate development group uses that money to purchase, build or maintain property ventures. You essentially fund a portion of a property acquisition and management group.

In return for your investment, you will be paid a portion of any profit that the company makes, much like a stock dividend.

While you may be wondering how wise it is to consider real estate in today's tough market, this is exactly why it may be a good time to look at a little more investing. Here's why. Sure, there has been a tough time for the markets. Lending has dropped, defaults on properties are on the rise. We're in tough credit times.

But now let's look at the positive side of things. Most think the slide has slowed and will soon be stopping. Add this to the fact that those capital markets that REITs use to get their funding for expansion and other purchases are low and that means the chances for REITs to get the capital they want to expand has dropped, for now. While you may think this is a bad sign, the truth is this is a time when the value of REITs is lower, meaning you can get in at a lower price. As things settle and go back to normal, your profits will go up and you will see an even greater return on your investment.

This is the time to log onto a website like REITBuyer.com and find out what REITs are out there, what they are selling for and get yourself in on this low tide so you can enjoy the ride when the financial wave picks up again.

With the other option being putting all of your money away and seeing no growth, what would you prefer?

Money Making Guru Robert G. Allen may have said it best saying, "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case."

Wednesday, February 25, 2009

Real Estate Investment Trusts for Security and Peace Mind in Turbulent Economic Times

Real Estate Investment Trusts to Hedge the Stock and Bond Markets

Have you taken a look at your investment portfolio lately? If you have, and it's filled with the normal stock and bond investments, you may have noticed that there has been a lot of damage to those investments in the past year or so. With the credit crunch and the market crash, most investments are half, or less, of what they should be.

This is when you should consider what you should be doing to hedge those other investments. This is where REITs come in.

REITs are Real Estate Investment Trusts. These are funds where you fund a real estate management company. There are a variety of REITs out there. Some offer a way to back real estate developers who are taking on new ventures in construction. Others are meant to fund management of residential real estate such as apartment complexes, condominiums or even neighborhoods. Still others use the funds put into the REIT to operate commercial real estate interests.

I think Louis J. Glickman said it best when he said, "The best investment on earth is earth.” Real estate is always a wise investment. No matter what happens the land will always be there. Sure it may waiver in value from time to time, but in the long run, it will always be around, unlike businesses that can close their doors and take your investments down with them.

With this said, adding a REIT or two to your portfolio it would offer you a little more diversity and security in your investments.

You never know what the stock market will do. Just in the past few decades we have seen a number of sweeping changes in the market that completely broke some investors. Think of how many people you know who went bust during the Doc.com era.

Often the problem for them was they were too focused on the flavor of the month. They were putting everything they had into the new Dot.coms hoping to continue to ride the boom and make great profits. While they did see some great profits, those did not last forever. For those who kept putting everything they had into the doc.com market, they felt the agony of defeat in a major way when the market fell, many losing everything they had.

While there is nothing wrong with trying to jump in on an up and coming thing and make a great profit, it comes down to the old 'all your eggs in one basket' cliché. You don't want to have everything hedging on one investment. Instead have a diverse portfolio so if there is a drop in one area, you have other investments hedged against it.

In this case, even when there is a drop in the stock market and mutual funds, real estate usually will hold pretty strong through the down times, keeping you from feeling that all of your investments have been swept away.

When you're ready to take a step towards diversity, make sure to do it right. Going to a website like ReitBuyer.com will help you do just that. They will not only give you the research and information you need to buy wisely, but they are also real estate brokers for these investments and can help you seal the deal.