When people first enter the investment market they come into the field thinking investing is easy. They think there isn't much to do other than pick real estate investment trusts and real estate mutual funds, drop their money in them and then sit back and wait for profits to come rolling in.
That is not the way real investing works. Real investors know there are always failures and setbacks. The key is to holding yourself together through them, making the best of the bad times, and using what you learn to do better in the future.
Holding it Together
The past year has been a great example of the kinds of things that can go wrong and make a mess of your investment portfolio. Between real estate crashes, credit crashes, stock market crashes and the country dipping into a recession, it has been a rough year. Sadly for many investors it was made worse by the fact that they did not really know what they were doing with their investments in the first place. These investors got into investing because they thought it would be a fun, can't lose proposition that they did not study before throwing their money blindly. So, as everything failed they either pulled their money out, swearing never to invest again or watched all of their money disappear.
Instead, when things start to go poorly, you need to be educated on your investments and know whether it is wise to sell or hold steady and ride it out through the duration. In the real estate industry being a part of a website like REITBuyer.com can help you with the information you need. REITBuyer.com is the first and only online brokerage that specializes in REITs and real estate mutual funds.
Make The Best Of It
As you start to see the changes in your REITs or real estate mutual funds, you need to decide what to do with your money. If you believe there are still more tough days again for your investments, you may want to sell some of them off. But instead of putting that money under your mattress, consider if there are other REITs or real estate mutual funds that may be reacting differently to the industry news and that could help you make back any losses you have just incurred.
Knowing what the trends are and where your money may be able to better perform at certain times is a great way to make more off of your initial investment.
Do Better In the Future
The final thing you need to do is make a plan for the future. If you have been wise you have taken notes along the way of what was happening in the market, industry and in your portfolio. There are often triggers in the news or trend reports that can key you in to financial changes that may be coming to your investments.
While you may have some down moments in your portfolio, if you learn from them, the potential for the future is much brighter.
This article was written by Earl E. Bird, spokes person for the REITbuyer.com, a site dedicated to educating Real Estate Investors on how to invest in Real Estate Mutual Funds to diversify their investing portfolio. Read more about investing in REITs at http://americanconference.blogspot.com
Sunday, May 17, 2009
Thursday, March 12, 2009
See Real Profits with Group Financial REITs
Many investors say they want two things in their investments – a return on their money and some security that their money will not be here today and gone tomorrow. When it comes to trading on the stock market or purchasing mutual funds, those are usually two things that cannot be promised. When you purchase stocks, you never know if the company is going to have a bad quarter, losing you a chunk of your investment or if they are going to fail altogether, taking your money with them.
The only place you can really be sure that you will not lose everything in a bad session is in real estate.
Even if the bottom falls out of the real estate market, real estate that has been purchased is an asset. So, while there may be losses in a major downturn, you won't lose everything. Often in this case if you were to hold on for a little while and be patient it will all bounce back and you'll be seeing dividends come in again like nothing ever happened.
There are two ways to invest in real estate. The first is to make a real estate purchase. For the most part this means having a lot of money in hand to be able to buy a piece of property or a building outright. For most people this is not a possibility as this means having tens to hundreds of thousands of dollars in hand to invest.
There is another option however. Instead, why not be a part of a real estate investment trust or REIT. A REIT is where you are a shareholder in property ownership. This means you will purchase shares that go into a collective pot that is used to purchase and maintain properties. These properties could be anything from commercial buildings that are being leased out to residential buildings that are rented out.
The way a REIT works is that as the real estate management group makes a profit, that profit will be given to you as a dividend. Laws dictate that at least 90 percent of the profits from a REIT have to be returned to the shareholders, so barring a major downturn in the economy you know you will get a return on your investment year after year.
That other 10 percent of the profit from the REIT will go back into the management of the properties or possible improvement or expansions that will give you even more return on your investment dollar in the future.
Unlike regular real estate purchases, there is another benefit to REITs. If you ever needed to pull some of your money out it is as easy as selling a few shares instead of having to sell a property and go through all those hassles.
Getting into the REIT market is also relatively simple. Just go to REITBuyer.com and you can research the REITs out there and even make your purchases in one stop, as they are an investment real estate broker as well.
The only place you can really be sure that you will not lose everything in a bad session is in real estate.
Even if the bottom falls out of the real estate market, real estate that has been purchased is an asset. So, while there may be losses in a major downturn, you won't lose everything. Often in this case if you were to hold on for a little while and be patient it will all bounce back and you'll be seeing dividends come in again like nothing ever happened.
There are two ways to invest in real estate. The first is to make a real estate purchase. For the most part this means having a lot of money in hand to be able to buy a piece of property or a building outright. For most people this is not a possibility as this means having tens to hundreds of thousands of dollars in hand to invest.
There is another option however. Instead, why not be a part of a real estate investment trust or REIT. A REIT is where you are a shareholder in property ownership. This means you will purchase shares that go into a collective pot that is used to purchase and maintain properties. These properties could be anything from commercial buildings that are being leased out to residential buildings that are rented out.
The way a REIT works is that as the real estate management group makes a profit, that profit will be given to you as a dividend. Laws dictate that at least 90 percent of the profits from a REIT have to be returned to the shareholders, so barring a major downturn in the economy you know you will get a return on your investment year after year.
That other 10 percent of the profit from the REIT will go back into the management of the properties or possible improvement or expansions that will give you even more return on your investment dollar in the future.
Unlike regular real estate purchases, there is another benefit to REITs. If you ever needed to pull some of your money out it is as easy as selling a few shares instead of having to sell a property and go through all those hassles.
Getting into the REIT market is also relatively simple. Just go to REITBuyer.com and you can research the REITs out there and even make your purchases in one stop, as they are an investment real estate broker as well.
Group Financial REITs to Invest in Online
Are you still of the old fashioned school where you think the best way to invest in stocks, REITs, bonds or mutual funds is to call your broker and ask him to make a buy for you? Why is that? By now, you should have realized that we have come a long way and the Internet is a way that you can take on these investments for yourself.
Many people are reluctant to take their own investing into their hands through the Internet. Their reasons vary from thinking they don't know enough about their specialty market to that they can't make the same kinds of buys as a broker to thinking that their broker knows more than they do and will make sure they get in on a good deal. Let's look at each of these for a minute.
I don't know enough about my market.
If you are one of the people who think you just don't know enough about your market to matter, that's only because you aren't trying to. If you invest in REITs, for example, there are wonderful websites that allow you to learn everything you would ever need to know, plus keep on top of what is happening right now, like REITBuyer.com.
Learning enough about your market to make wise decisions only takes a few minutes a day to do and can take you a long way in the profitability of your investment portfolio.
I can't make the same types of buys as my broker.
Think again. While your broker may have a really fancy computer system on his desk that he uses to make your purchases happen for you, chances are he is really using a program that is just as simple as one you could use to make the purchase. For example, REITBuyer.com is a complete brokerage firm of real estate investing that will allow you to buy and sell, as you need to, from the comfort of your own computer.
My broker knows more and will make sure I get good deals.
Unless you are sinking millions of dollars a year into your accounts, you’re not big enough for a broker to call you. If your broker hears about a great buy possibility, he is going to call his most prized clients first. Those are not the friendliest ones, but the ones who stand the chance to make him the most money. After all, this is business. This means you are likely not going to get that phone call and are going to miss out on the deal.
On the other hand, if you were signed up with a company like REITBuyer.com you would see those news stories that are going to impact the market as they come through and also be able to take a peek into the minds of the analysts on their blog to get the inside track on what is happening in your investment world. Then you can make the decision to act right away and reap the rewards.
Many people are reluctant to take their own investing into their hands through the Internet. Their reasons vary from thinking they don't know enough about their specialty market to that they can't make the same kinds of buys as a broker to thinking that their broker knows more than they do and will make sure they get in on a good deal. Let's look at each of these for a minute.
I don't know enough about my market.
If you are one of the people who think you just don't know enough about your market to matter, that's only because you aren't trying to. If you invest in REITs, for example, there are wonderful websites that allow you to learn everything you would ever need to know, plus keep on top of what is happening right now, like REITBuyer.com.
Learning enough about your market to make wise decisions only takes a few minutes a day to do and can take you a long way in the profitability of your investment portfolio.
I can't make the same types of buys as my broker.
Think again. While your broker may have a really fancy computer system on his desk that he uses to make your purchases happen for you, chances are he is really using a program that is just as simple as one you could use to make the purchase. For example, REITBuyer.com is a complete brokerage firm of real estate investing that will allow you to buy and sell, as you need to, from the comfort of your own computer.
My broker knows more and will make sure I get good deals.
Unless you are sinking millions of dollars a year into your accounts, you’re not big enough for a broker to call you. If your broker hears about a great buy possibility, he is going to call his most prized clients first. Those are not the friendliest ones, but the ones who stand the chance to make him the most money. After all, this is business. This means you are likely not going to get that phone call and are going to miss out on the deal.
On the other hand, if you were signed up with a company like REITBuyer.com you would see those news stories that are going to impact the market as they come through and also be able to take a peek into the minds of the analysts on their blog to get the inside track on what is happening in your investment world. Then you can make the decision to act right away and reap the rewards.
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