This Investment Lets You Own a Piece of Premium Real Estate for Less Than $100 | Global News Avenue

I used to dream of major real estate, but do I think it is out of reach? Real Estate Investment Trust (REITs) has changed how daily investors make a profit from real estate, instead of obtaining the rent check of the anniversary by knocking on the door. All properties from luxury shopping malls to senior office buildings.

As the author of Harm Meijer Meijer Real Estate Rules: Select the winners and avoid investor guidelines to avoid losers in the listed propertyExplanation: “Use REIT, click the mouse and buy stocks, that’s all.”

How to make real estate investment accessible

For most investors, buying high -end real estate is out of reach. As Meijer pointed out: “If you buy real estate directly, you must know what you are doing. You must have local knowledge … this is a lot of work.” Reit This problem is solved by providing professional management and scale economy.

Real estate investment trust fund is also very high liquid You can quickly buy and sell through a conventional brokerage account. Most trading at a price of $ 100 per share allows you to start a investment portfolio through a small amount of initial investment.

Make a smart REIT investment option

According to Meijer, the successful REIT investment involves checking the property in the REIT investment portfolio. He said: “You must understand their types of assets in depth.” “This sounds obvious, but many people do not do so. When the market turns, this will definitely indicate.”

Meijer proposed a three -step method to evaluate Reit:

1. Check the attribute

Meijer recommends: “First of all, you must understand the attribute type in its investment portfolio.” This is easier than you think: REIT provides detailed information about its attributes on its website, including photos and location. Take some time to view the following:

• The location of the attribute
• What kind of property is they (office building, shopping center, apartment, etc.)
• The quality of buildings and its community
• The main tenants who rent these properties

You can even use Google Maps to access these locations. Meyer said: “Even in half an hour, you will have a good understanding of them.”

2. Check the debt level of the real estate investment trust fund

Just like the homeowner can beThe house is poor“With too much mortgage debt, REIT needs to carefully manage its borrowing. Meijer recommends to see a simple measure, called”EBITDA’s net debtHe said: “You can find it on the financial report and financial website of the real estate investment trust fund.

3) Research and management team

Meijer said: “You want skin management in the game.” This helps to ensure that they make decisions that benefit all shareholders. A good management team should also::

• Experience through different market cycles
• Have a clear strategy to develop business
• Regularly

One key warning proposed by Meijer: Do not be attracted by high dividend yields: “Too many people just focus on the yield. They see 10 % and think” I will continue to move forward. ‘And always always always “He said.” He said. He said that the yield is usually very high, because the market see a major risk in the future.

Start investing in real estate investment trust funds.

You can purchase REIT stocks through any conventional brokerage account, that is, the way you buy stocks. Most major agents provide commission -free transactions, you only need one share. Fund, Charles Schwab and Pioneer (Vanguard) and other popular agents provide REIT transactions.

Bottom line

Reit provides an accessible way to add real estate to your investment portfolio without being complexity of direct property ownership. It takes some homework to find a better real estate investment trust fund, but it has less participation compared to the convening of a call to lock the guest toilet late at night.