So that is the phrase I've always heard when it comes to Real Estate. There is a finite amount of land in the world, so grab the opportunity to invest when it present itself.
I took a finance class a few years ago and it introduced me to an investment type I had never heard of. The R.E.I.T or Real Estate Investment Trust.
Sound good doesn't it? A R.E.I.T. is a firm that manages and in most cases owns a group of properties. They split out shares in this firm and sell them on most major exchanges. They can be bought and sold similarly to stocks.
The downside of investing in a property is that you have to either live there, be a landlord, or build it and sell it. That means you have to sink your money in for the long haul. Here enters the R.E.I.T : A security that is sold like a stock and has the liquidity of a stock. You know, being able to buy and sell with relative ease. You get to invest in Real Estate, Hotels, Apartments, etc. without all the hassle of ownership.
Returns are pretty good, even in a Bear market. I mean people have to have some place to live. That is why I prefer to invest in an R.E.I.T. that has a majority of apartment properties.
Average returns over the past few years range from 8% - 13%. Of course returns vary as with any investment, these returns are more predictable based upon renters in the apartment units held within the security.
Be wary of a Mortgage based R.E.I.T. , the reason I caution you is that if you're in a position to invest you are old enough to remember the mortgage collapse of 2008. It was due in part to securities bundled together that were largely based on Adjustable Rate Mortgages. When these "ARMs" adjusted to a higher rate, a lot of people could not pay the higher payment and defaulted on these loans. Because those people could not pay, that meant the people that purchased the ARM backed investment no longer had any value in their investment. If you look into Mortgage backed securities of any kind, proceed with caution. Don't just accept that it has a good rating, look for transparency of what type of investments make up the security. OK I am off my soap box.
Back to the action: I have recently become aware of a company named Fundrise. They offer a new alternative to investing in a R.E.I.T. It allows you to buy shares into what is similar to a Mutual fund that is comprised of R.E.I.T. investments.
I've read about Fundrise, they are a new breed of crowd source funding. They are crowdsourcing funding for small real estate business investments. They will allow you to buy in for $1,000 minimum investment. They do restrict selling / redeeming of your shares to a quarterly basis. This allows for more stability in capital they have to offer for investment. They claim to have yielded an average return of 13% last year. If you're looking for something new to invest here, give it a look.
Fundrise Website
They are legit and are registered with the SEC, so no Ponzi scheme here.
If you're in the market for a more traditional Real Estate experience i.e. buying a home or condo check out
Breanne Flowers, she is highly recommended for North and South Carolina Sales :
www.breanneflowers.kwrealty.com
