Friday, February 27, 2009

What are REITs?

About REITs: Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) were created in the 1960s so that all investors would have access to income-producing real estate through the purchase and sale of liquid securities. Before REITs were created access to investment returns of commercial real estate equity was only available to institutions and wealthy individuals.
For over half a century, REITs have become an important part of the US economy and investment markets. US REITs have grown from $90 billion to over $300 billion in the past decade and they have gained popularity all over the world.
During their early years, mortgage REITs dominated the industry, providing debt financing for commercial or residential properties through investments in mortgages and mortgage-backed securities. Interest in equity REITs which own and manage commercial properties was limited because of the requirements that ownership and management of assets remain separate. This restriction was lifted with the passage of the Tax Reform Act of 1986 which allowed REITs to both own and manage properties. Now, more than 90% of publicly traded US REiTs are equity REITs that own and manage commercial real estate. Most of their income is derived from rents owned by companies across the nation.
There are certain guidelines in place that must be followed in order for a company to qualify as a REIT in the US. The internal Revenue Code requires at least 75% of total assets be invested in real estate which realize at least 75% of its gross income from rents from real property or interest from mortgages. They must also distribute at least 90% of taxable income to shareholders annually in the form of dividends.

Invest in REITs, Invest Like the Wealthiest Investors

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.

REITs - Investments that are No Longer Restricted to the Wealthiest Individuals and Institutions

About REITs: Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) were created in the 1960s so that all investors would have access to income-producing real estate through the purchase and sale of liquid securities. Before REITs were created access to investment returns of commercial real estate equity was only available to institutions and wealthy individuals.

For over half a century, REITs have become an important part of the US economy and investment markets. US REITs have grown from $90 billion to over $300 billion in the past decade and they have gained popularity all over the world.
During their early years, mortgage REITs dominated the industry, providing debt financing for commercial or residential properties through investments in mortgages and mortgage-backed securities. Interest in equity REITs which own and manage commercial properties was limited because of the requirements that ownership and management of assets remain separate. This restriction was lifted with the passage of the Tax Reform Act of 1986 which allowed REITs to both own and manage properties. Now, more than 90% of publicly traded US REiTs are equity REITs that own and manage commercial real estate. Most of their income is derived from rents owned by companies across the nation.

There are certain guidelines in place that must be followed in order for a company to qualify as a REIT in the US. The internal Revenue Code requires at least 75% of total assets be invested in real estate which realize at least 75% of its gross income from rents from real property or interest from mortgages. They must also distribute at least 90% of taxable income to shareholders annually in the form of dividends.