Sunday, March 22, 2009

Own Real Estate Profits like a "LTD Holdings" Company - Getting to Know Two Kinds Of REITs

By now, you may have heard of REITs. If not, this stands for real estate investment trusts. These are essentially funds that you can purchase shares of to build, buy or manage real estate holdings like a "LTD Holdings" organization. Annually, the bulk of the profits from the real estate holdings are used to send dividends to the shareholders.

Generally there are two kinds of REITs – Property Owning and Mortgage.

Many of the most popular REITs fit into the first category – property owning. These are REITs that use their funding to purchase properties and then make a profit from those properties that they pass on to their shareholders.

These REITs could own any of a number of property types. Many focus just on commercial real estate such as strip malls and stores. Others focus on residential real estate like homes, condominiums and apartment complexes. Still others have a focus on the industrial sector, with real estate investment in warehouses and other industrial needs.

The other style of REIT is a mortgage REIT. These REITs are more on the backside of things. Their money goes into mortgage securities and purchasing mortgages with a hope to make a good profit on the interest from those properties.

There are also REITs that combine both of these aspects and put some of their money into each area.

For the most part, REITs are a smart investment. Generally they see a return of 6-10 percent on investments. They can always see more, but many people just like the fact that for the most part they will have a positive return that they would not have seen otherwise.

Before you begin on any sort of investment path, you need to know just what you are getting into. That means you need to do your research. If you want to start to get a look at some REITs and what they do, that's not a problem. Just like other stocks, bonds and mutual funds, they are publicly listed, so you will have no problem finding them and seeing how they are faring in comparison with the stock market.

The wisest way to go about this research is to use a site like This is a site that is focused on this specific type of investing. You will be able to do the research you need to learn about the specific REITs you are interested in, plus get a lot more.

One of the things you may want to keep an eye on at is the news feed. It is news specifically related to the REIT market. That means you don’t have to spend a lot of time sorting through all the financial news of the day. The information you need will be right there.

Then when you are ready to buy, that's made easy as well. Considering that is a complete investing real estate broker, you will be able to buy, sell and trade your REIT investments right from their website.

Own a "LTD Holdings" Company - Get Consistent Returns with Real Estate Investment Trusts

If you're looking for an investment that has proven returns like "LTD Holdings", you may not be sure just where to look in today's ailing economy. What about REITs? REITs, or Real Estate Investment Trusts are known for consistent returns and can be a strong and always positive part of your investment portfolio.

Sure, everyone wants to find the next great investment, an investment that will bring them the big bucks and make them an overnight millionaire. Although this does happen, the cases of that are few and far between. Instead, you need to focus on making sure you have a diverse portfolio that will hold you through all times.

Consider this scenario. You see the next big thing coming. You sink all of your money into that particular thing and wait for it to reach the top. Before you get a chance to pull out, the market plummets, taking all of your profits with it and possibly even some of your principal. That's a horror story that comes true for plenty of investors year after year. The flaw in their thought is that they put all of their eggs in that one basket! When the basket fell, everything went with it.

Now consider this scenario. You see the next thing coming and put a good portion of your investment funds in that arena, while still also putting some of your money into more secure or long-term investments like real estate. You again wait for the investments to reach the top, but the bottom falls before you expect. While you may take a major hit on the one side, that other, long term investment side of things you had also been putting money into will still be there and will give you a little bit of a base to rebuild from. You will still have a portfolio with some strength, versus one that is nearly empty.

Real estate is often considered the rock when it comes to investment, just ask Donald Trump who says, "It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate."

The good news is while being solid, REITs can still bring a pretty good profit. Consider that many REITs make a 10-14 percent return every year. That's a nice strong return when it happens for 10, 20 or 30 years without fail! If you look at the overall performance of the stock markets and most mutual funds, you will see there is not much difference in the two for long-term returns.

When you're ready to start investing in real estate, you need to make sure you know what you're getting into before you buy. While you could search all over and try to find out for yourself, there is another option as well. Consider a website like offers all the information you need to understand REITs, where they come from and how to best begin investing. In addition, you don't have to go anywhere else when you are ready to add REITs to your portfolio, as they are also investment real estate brokers. It's one stop shopping for a stronger and more secure financial future!