Researching REITs - Real Estate Investment Trusts - to Learn their Benefits and Downside

March 19, 2009 - PRLog -- Detroit, MI – A REIT is generally a property management investment where an investor funds a property management company who handles the asset and pays out dividends from the profit.  Earl E. Bird, III, representative of the REITbuyer.com explains, “One may purchase shares in commercial REITs, like a shopping center or strip mall, or residential REITs like housing developments, apartments or condominiums.  As tenants move in and lease those spaces, the REIT makes a profit and pays dividends to the investor.”

Earl went on to explain the benefits of investing in REITs.  “Unlike other stocks and mutual funds, REITs come with some very strict rules.  A REIT must pay out at least 90 percent of its profit in dividends to the shareholders, which means that REITs usually see an annual return averaging 6 percent or more.  REITs are not strongly tied to other investments and stock fluctuations; they can hold strong even when the rest of the market is unstable.  REITs are a solid starting platform that can bring in a steady profit for years to come, as they revolve around something tangible including land, homes, apartments and businesses with long-term leases which feed the dividends.”

Like everything in life, there has to be disadvantages.  When asked about the downside of investing in REITs, Earl said, “There really are not many bad points.  The growth is slow, because only 10% of the profits are going back into the business, meaning slower growth.  Like any investment, there is always the chance that a downturn in real estate will cause your REIT to earn a smaller profit for the year. “

In summary, Earl strongly believes that REITs are worth looking into.  There is a lot of information on the internet where investors can research and learn about REITs and how they work.  

http://www.reitbuyer.com/ is an online brokerage specializing In REITs and Real Estate Mutual Funds – The first and only site dedicated to REITs Real Estate Mutual Funds.   This is a place for the small investor to own a piece of world class real estate.



Contact:

Earl E. Bird, III
25900 11 Mile Rd #260
Southfield, MI  48034
877-707-1770
earlebirdiii@gmail.com


This press release was submitted by Right Now Marketing Group, LLC

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