Real estate investments are arguably one of the safest and most effective ways to diversify your investment portfolio. Your real estate investments hold strong potential to bring huge returns, and that’s what REITs bring to the table. Real estate investment trusts, or REITs for short, offer a convenient way for investors to profit from real estate without going through the hassles of direct property acquisition. To shed more light on the topic, we answer five frequently asked questions about REITs. Take a look.
What types of REITs are out there?
REITs are mainly of two types – equity or mortgage. Equity REITs mostly own and operate income-producing real estate. Mortgage REITs, on the other hand. usually work by lending money to real estate owners and operators or extend credit indirectly through the acquisition of loans or mortgage-backed securities.
How do I invest in an REIT?
You can invest in REITs in different ways including purchasing shares of mutual funds, publicly traded REIT stocks, and exchange-trade funds. If you are looking to invest in REITs, the team at FIG Tree Capital Ventures can help by analyzing your financial objectives and recommend appropriate investment solutions.
What are the investment benefits of REITs?
REITs offer a range of investment benefits such as profitable dividends and wealth accumulation, regular income from rents, reduced portfolio volatility, corporate governance aligned with shareholders interests, audited financial reports, and higher returns than corporate bonds.
What’s better – REITs or direct investment?
People prefer to directly invest in real estate, which is profitable, but REITs have some superior benefits of their own. REITs eliminate the risks associated with direct investment such as lack of diversification, lower liquidity, and higher risk due to varying occupancy rates and maintenance costs.
Where does REITs scale on liquidity?
Unlike any direct property ownership, a REIT offers daily price quotations and convenient liquidity. Where direct real estate holdings usually have limited liquidity options, REITs are a liquid asset that can be sold relatively quick to raise cash or cash flow for other investment opportunities.
Looking for Real Estate Investment Options?
FIG Tree Capital Ventures has a Real Estate Acquisition Fund designed to create a real estate based asset portfolio targeting properties with existing cash flow and appreciation potential for investors. To learn more about our real estate investment projects or get a comprehensive real estate investment guide, speak with one of our investment consultants at (866) 545-1225. Alternatively, fill out our contact form and we will take it from there.