Saturday, February 28, 2009

Instead of Early Withdrawl Penalties, Invest in REITs for Liquidity

REITs – Real Estate with Liquidity

As many people these days are finding out while real estate seems like a wonderful investment, it can also be a painful one if your investment was in a piece of property that you own outright. Many people who had purchased investment properties or homes they were planning to flip for a profit were sent into bankruptcy in the recent housing market crash.

With that said, real estate has long been the solid investment option for those who like to put their money somewhere that it can see results but also remain stable.

So, how does one be able to still be involved in the real estate market and not be caught in that same trap? The answer is by purchasing REITs. A REIT is a real estate investment trust. This means it is much like a mutual fund in that a number of shareholders put money into the fund and that money is used to purchase, finance or manage real estate properties. The profits on the fund then come from mortgage interest, rent or lease moneys that come in.

For the most part a return on REITs averages 6-10%. U.S law dictates that 90% or more of the profits on a REIT go to the shareholders, and that makes them a pretty strong investment option.

The short version of what a REIT is, is a way to be a partial owner in real estate.

But with this said, one of the things that many people fear about real estate, being stuck with a property that will not sell in a down market, is not a problem here. Instead, REITs are totally liquid. If you think things are not going to go well in the future of your REIT, you can sell and get out and then put your money back in when things are looking up again. If you do this right, just this can be a big profit maker for you as you will be pulling your money out when the REIT is high and then putting it back in, and getting more shares, when the market is low.

If you are one of those people that think there's no way to know when the market will do well or fail and that it's all luck, that's not necessarily true. As Smith Barney said, "There's blind luck, dumb luck and then there's get up every morning at 5:30 and sweat the details luck. Few people actually stumble into wealth. It takes persistence, tenacity and a tireless work ethic. In the end, luck has little to do with success."

This is also the case here, by doing your own research and keeping on top of the market you will be able to make wise investing decisions. With the help of REITBuyer.com you will be able to do this. REITBuyer.com has all the tools and resources you need to be able to make wise decisions on what REITs to buy and also see when you need to sell. The added benefit by being a part of REITBuyer.com is that not only will you have that information at your fingertips, but also the ability to buy and sell your REITs as they are an investing real estate broker.

No Need for Early Withdrawls With REITs - Real Estate Investment Trusts

Being Small and Playing the Market Like A Big Dog

If you like investing in REITS, you may be thinking it would be nice to be able to see investing like the big guys do. They are in their brokerage firm offices and have everything at the touch of a button.

You can probably picture their computer screens with a live feed of news stories relating to the REIT market. They have live numbers showing how the various stock markets are doing. In another part of the screen they have charts and scales that show how the funds they are working with have been performing and are expected to perform. They are able to buy and sell at the touch of a button and they even seemingly have a backdoor to the brains of the analysts to know what they are thinking about where the market will go next.

Wouldn't it be nice to have that kind of access? Why shouldn't you? While you may be thinking that you can only have that type of set up by working in a brokerage firm, there really is a way to have it, all to yourself. It's called REITBuyer.com.

REITBuyer.com is a website that is focused on REITs or real estate investment trusts. That means you will have clear and concise information about your market. Here's what they offer:

Advice and Education


One area of their website is focused on nothing but advice and education about the real estate market and the world of REITs. This is vital to read over if you are new to REIT buying, as it will give you a good overview of what you're getting into and how they work and pay you back for your investment.

Tools and Research


Knowing you want to be investing in a market is one thing, actually doing it well means you have to know what you are doing and have done the research to make sure you are making a wise decision. This portion of their website will make sure you have the research and tools you need to make wise decisions.

News Feed

As you know the markets can change in a moment, and if you're not paying attention, you could miss something vital to your investment future. REITBuyer.com has a news feed that will make sure you see the news items that impact your REIT investments as soon as they hit the wire.

Blog


Additionally, there is a blog area where analysts can look at the indicators and give you a heads up or look inside what is happening in the world of REITs.

Statistics


It's always good to know how your investments are faring compared to the rest of the market, and stock quotes, FOREX trading and other major market indicators are exactly what you can find when you check the updated statistics on the site.

Online Trading

Finally, it is vital to be able to act when you know it's time to act. Since they are a full service investing real estate broker, you are also able to do your trading online through REITBuyer.com.