A
Real Estate Investment Trust
or
REIT
(pronounced
/ˈriːt/
) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.
Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms.
REITs can be classified as equity, mortgage or hybrid.
The key statistics to look at in REIT are its
NAV
(Net Asset Value),
AFFO
(Adjusted Funds From Operations) and
CAD
(Cash Available for Distribution).
John T
asked:
"Can anyone explain how real estate investment work. name some investment you you can make money of. Finally what is the process of foreclosure steps to make money and how does work. 10 points for the top answer."
Question posted courtesy of:
bonsai replied:
"Making money on a foreclosure in today's market is kind of iffy. There are professionals, who know how to trim up a house with some cheap carpeting and painting jobs and turn them for 40,000 profit in a week. Then there are people, who have no clue and go bid to high.I would go to a couple of auctions and get a feel for it, do some research and safe some serious money first."
chatsplas@sbcglobal.net replied:
"Be a vulture. Profit from others' misfortunes."
axaroth replied:
"It's easy to find property you can buy cheap right now. The problem is you won't be able to sell it easily to get your profit back after you fix it up.You're looking for easy money--- real estate isn't it. Unless you can afford to buy some cheap properties now and rent them out for a few years until real estate stabilizes, and then sell when the market gains momentum again."
music zone
asked:
"I have a house for sale at an excellent price, no realtors involved, and want real estate investors to take note. How can I persuade the person in charge of our local real estate club to distribute my e-mail regarding my property? They get solicited all the time, I'm sure. I already e-mailed my property offer and photos to the generic property investment club e-mail address, is this enough? Will they distribute it to all of their members?"
Question posted courtesy of:
Mistery replied:
"Tell them"
acermill replied:
"If they were interested in purchasing your house, you would have heard from them by now. When such solicitations arrive, they are put aside for review by members of the procurement committee. If they see value in the property, it will be discussed with the members."
r2mm replied:
"They probably will treat your email the same as they treat any other property for sale solicitation. Do you know the name of anyone in the club? Can you find out? You could try hand delivering a copy of your offer and photos. You could also ask for some feedback as to what types of properties the club is interested in, to give you an idea about the level of interest the club may have in your property."
godged replied:
"How investment clubs work vary with the club. But as the others said, I am certain they are solicitied all the time. If it was an excellent price, you probably would have heard from a member(s) of the club by now."
tampabaycreditdoctor replied:
"Many real estate investor clubs have sub-group meetings, often in local eateries. Get flyers printed and go to these meetings and pitch your property to them. If the club has a monthly meeting, see if you can go there and pitch it also. The size of of investment club may be of importance here."
no_mo_names replied:
"Are you a member of the club? Usually, members can showcase their properties during their monthly meetings.Another thing is to list your property on their online forum or classified section if they have one.Finally, if you are looking for investors, you can go to my website atAction Investor Network will let you post your property for other investors to view and purchase from you.Good luck."
bigmacfann
asked:
"I need some good advice on whether I should start my California-based real estate investment company as a sole proprietorship, a partnership of some sort, or some kind of a corporation. The general purpose of this company is to purchase and rent out residential and commercial real estate. Any help would be greatly appreciated."
Question posted courtesy of:
saberhilt replied:
"I'm in the same boat and looking to buy my first property as well.I set it up as an LLC.Sole Proprietor is generally a bad move in my opinion as it offers no protection of personal assets should something happen to that property.If you want to send me an email through the system here, I'm more than happy to chat about what I've done, who I've talked to, and what contacts I've made."
jeffnicolas
asked:
"I'm almost 90% sure that i want to start my real estate investment company as a corporation not a LLC. I was wondering is this a good idea. Also, can't i sell shares of my company to private investors to raise capital. Any advice on starting a commercial real estate investment comapany will help."
Question posted courtesy of:
elle55407 replied:
"I think you are right on starting as a corporation.HOWEVER...as legalities vary from state to state on private investors, I think you really need to find a good small business attorney in your area, pay him a fee, and find out the in's and out's from there. A lot to consider with investors. 1) Are they going to be silent partners? Or 2) Are they going to have an equal say in how the company is run? Would be worth the fee.to find a good business attorney to lay it all out for you. Or find a book on amazon about starting a business. Once you are using someone elses' money, the company is no longer yours exclusively, unless you have a proven track record and your investors are willing to leave you in full control."
Big Deal Maker replied:
"If you start a corporation in the real estate business as a start up business to purchase any kind of property at this time you would need to have a personal guarantee to the purchase of any real estate deal. Once you have established a track record as a corporation. Then the banks will not longer be looking for the personal guarantee.If you decided to sell shares of stock. then your company has gone public. There are a ton of other things that you will need to worry about.In my opinion i would take a few partners and get a LLC. That is a limited Liablity CO.Remember a Corporation if not done right could have its vail broken and still go after you personally."
Jason252
asked:
"I want privately held investment and real estate companies engaged in the acquisition, development and management of select real estate projects and selected business opportunities. I want to developed over 4,000,000 square feet of urban real estate including office, hotel, retail, town-home and commercial parking properties. How can I get started? Thanks"
Question posted courtesy of:
laneramadonna replied:
"You need a team. See if there are any real estate investment groups in your town. Google it.Then go to yahoo groups, msn groups and google groups and search for real estate investment groups in your community.Find out when they meet and go sit in on the meetings. Don't discuss your plans until you know who you're dealing with. You're there to learn first, network second, and do business third. Your goal is to build your team (investors - contractors - etc)"
nestegg80 replied:
"Typically if you have exclusive, or line of site on a good project that you can easily articulate how you can drive a return, finding capital will not be that difficult. I would pursue the following strategy:-Lock up the real estate/ or at least develop a strong relationship with seller-Build your financial model that captures the development, operating, and carrying costs to show the projected return on equity for the investor as well as the return to you.-Create a presentation that articulates the financial return, the sub-market trends, targeted tenants, etc.-Form an LLC-Start fund raising."
Insider strategies revealed by real estate investors to make the most money in commercial real estate or apartment building investing, aka multifamily property. Learn how to buy or invest in apartment buildings with no cash or credit. Get a free report on how to create wealth and enjoy huge monthly income from apartment building investing.
Take advantage of our real estate investing resources and learn real estate investing free. No cost or obligation, everything available to you at our learning center is 100% FREE!
If you are thinking of investing in real estate property either for resell or for a long term investment, you will want to consider a few things before making the final decision. The idea of investing in the first place is to make a profit so you will want to take into consideration the price you will pay for the property, what you can either resel
If you are thinking of investing in real estate and have very little money and less experience, there are still ways you can do this. There are many people who have made quite a bit of money doing this. With interest rates at an all time low this is the time to invest. The money you can make when you buy property and either resell or rent it can be
If you want to make money investing in real estate, but you are not quite sure how to get started, I can help. In this article, I will provide you with some great tips to help you getting started investing in real estate. Let's get started.
