Investing Advice

Real Estate Investment Trusts (REIT)

A reit invests in real estate, mortgages, or both. Such real estate may include shopping centers, apartment buildings, office complexes, hotels, warehouses, retirement homes, golf courses, or retirement communities. Some, called mortgage reits, donít hold real estate but lend money to developers. Reits are required to immediately pass on to investors 90% of income, after expenses.

If you are drawn to investing in reits, a mutual fund is the only safe way to do it. An individual reit is not always successful. A recession can bring about high vacancy rates, resulting in severe losses. In 1998 and 1999, with no recession as an excuse, most of the 187 reits lost money. The average one made 5.6% in 2001.

The big advantage of reits over other real estate investments is liquidity. When you want to cash out, you do it through your broker just like you would do with any other stock, and buy more shares any time you like.

Equity REITS

In theory, these will go on forever. The best buys are usually in older, long-established reits whose underlying value may be much greater than the share price.

Finite-life REITS

These have a specified life of 10 to 15 years, when the properties will be sold and the profit distributed to the shareholders. These are similar to real estate syndicates and limited partnerships, all of which offer you the benefits of owning real estate, but without the burden of managing the property and the potential liabilities of an owner.

Other Types of Investments Topics:

  1. Interesting Ways to Invest in Real Estate
  2. Real Estate Investment Trusts (REIT)
  3. Bonds
  4. Bond Ratings
  5. Closed-end Bond Funds

Did you find the information you were looking for?
After reading the above article, what is still your biggest question?

Get Weekly Investing Advice
Receive free practical investment advice and tips delivered weekly to your email box with contributions from financial planners, investors, and financing and loan professionals.
  I want to ask a question and receive investment tips.
  I only want to ask a question and don't want helpful advice.
E-Mail Address:  
Your Name:  

To find more investing and stock related websites input the phrase "investing advice" directly into the search box below or simply type in your own search phrase to see over 1 million other investing, stocks and online trading websites.
Who's Not Investing?

Millions marry and start families each year without taking basic steps to make sure their future, as well as their children's, is financially secure.

According to a recent survey by Princeton University and the Consumer Federation of America, 70% of households with incomes under $50,000 a year have retirement savings of less than $5,000. This same report said "most Americans are living paycheck to paycheck".

Learn more about how you can plan, save and invest smart for your family's future.

 Investing Money Sections
arrow Why Invest Money?
arrow Investment Basics
arrow Saving Money
arrow Stock Market History
arrow Stock Market Basics
arrow Stock Market Indexes
arrow Stock Market Investing
arrow Mutual Funds
arrow Investing Advice
arrow Retirement Planning
arrow Saving for College
arrow Financial Planners
arrow Investment Opportunities
arrow Financial Charts
arrow Investment Terms


Return Home

 Home | Contact Us | Privacy | Site Map | Legal notices
 Copyright A to Z Investments © 2005. All rights reserved.