I saw several questions about the REIT charts in the TotalView tool (www.totalviewrealestate.com). I started to simply reply in the comments, but it started getting long enough to justify its own topic. Without further ado...
To answer the questions about REIT charts.
REIT = Real Estate Investment Trust
Think of it as a mutual fund for real estate. If you have only $50 or $50,000,000 and want to invest the real estate market. Not by making actual deals, but banking on the idea the market will go up say 6-10%+ year over year for example. You can buy shares of these REITs just like you could be shares of IBM. Your investment goes in a fund that the investment company uses to go buy properties or otherwise leverage real estate.
As the value of the properties increase or income is derived from sales or lease the shares are worth more. Basically, they invest your money for you on a large scale. These investors may even be ones who buy up your deals you find.
The REIT charts represent two different things. The Index chart is a index of how all REIT's combined are performing. A REIT can be all types of real estate, or very specific, like only: commercial, apartment complexes, residential, etc...
The Index gives you a pulse on how the equity markets feel about real estate in general, all forms. The residential chart shows the most popular residential REIT traded to give you a clue about strictly how residential real estate is being perceived by traders.
Traders, brokers and your average person buying stocks on their PC are not real estate investors, so the REIT can't give you the best picture, but they are people who are betting their money on an outcome, and some of them are pretty smart - so it is worth seeing how other people feel about the real estate market at any given time.
This is just scraping the surface, but it enough for the purpose of the way you will care to look at for the most part.
Who is Dean Graziosi?
Are People Actually Successful?
Does Dean Practice What He Preaches?
What Deals Are The Students Doing Right Now?
dgadmin,
Thanks for the additional information, insight and explanation of the REIT subject. I am sure there were many people that had questions and did not take the time to ask. Thus, your explanation and information will probably benefit many of the members. Believe and Achieve!
- Joe
Reits
I can now see why this is useful. If you see an uptick in Reits that means investors may be gaining confidence in the market but that does not mean the market has totally recovered.
Interesting
Thanks for that info I never heard of that I seen it but just didn't know what is was for.thanks
umm
never what that was thank you!
Thank you for that insight,
Thank you for that insight, makes it very clear to understand.
You Know The Saying
"Give a man a fish, he eats for a day, teach a man to fish, he eats for a lifetime." This is the philosophy I envisage from this whole Blitz affair. We are being provided with the tools, it is up to us to use those tools to our advantage. Great Blog as usual Dean. Our thirst for knowledge is overwhelming as we await the upcoming conference call. Thanks and may God continue to bless you for helping others.
Sandra
Interesting..
Yet another tool in our Arsenal for Success.
Thanks for the great info, as always.
-Mike Hutchins
Consider this...
Since a REIT basically works like any stock on the ticker, it is traded quite readily. If traders think the market has hit a bottom, they will dump money into the REITs since it becomes a profitable stock investment based on their prediction.
Now, if REIT has influxes of hundreds of millions all the sudden, the trust has to invest that money in real estate. Banks know this too, so keeping their prices firm, be it residential or commercial, will force the REITs to eventually pay what they want to get paid. A REIT won't sit on all the cash not turning any profit waiting for the perfect deal like we will, and we are small fries also.
The cycles and events driving price action the triggers are exponentially complex, but looking at different angles like this can help explain the reasons why markets are doing what they are doing.
If money gets drawn back out of REITs I would imagine that would soften bank prices to a degree, and softening prices makes the retail public think buying a house is a bad idea, and they further soften.
So much to look at, but a draw down in REITs would actually be good for us to provide more opportunity to stock up on cheap deals if the cycle is affected as I speculate it is to some degree.
REITs
I was one of those asking about this topic. Thanks for the info and comments
The tool
Hello everybody,
I ran my home on (the tool)total veiw,And i believe it is running well.I really understand now about...What you do not know,Does not hurt you!
P.S. If you never wanted anything to do with the stock market,Well your property is...All about stock/Good-Luck!
The total veiw is running/Great info!
censor
Hello everybody,
I did an "Total Veiw/REIT Charts",I was surprised by the findings.I basically ran my castle to see where the property stood.In my findings,My property is well worth less...Than considered.
i have been around for a distance! It comes clear everyday, everyminute and second...Life is an Game of chance,I know i am being a home-owner and that is good as well.The market will always be the king of assets.
I think what i really want to say is:Learn too read between the lines./Don't believe everything, when making your OFFER!
P.S.I was given an 102k/I am easy, 130k + C2 possible.
Tool is great info/I will wipe the tears from my eyes!
reit
thanks for the info.i always see the word reit but i never knew that it was associated with stocks.thanks for schooling me.
thanx for info
thanx for info
REIT'S
I'm the new kid on the block. Everytime I read something from this site its packed with info. Thanks very much for that! Now I know more! I just love it!
Good Luck
Thanks for the info. Im going to check into the REIT chart now. I realy never paid it any attention.
Good info, thanks for the
Good info, thanks for the post. No wonder Dean's comeptition wants him to charge for this site...haha.
Great stuff, keep it up guys.
For Real
Very intersting, thanks Dean for the info
Good stuff this is a good
Good stuff this is a good way imo to share in real estate profits if you dont want to take an active role.
REIT - Investing $50
I assume I am the newest person. I read about the REIT. You give an example regading investing $50 (mutual fund for the real estate). I do not have a buyer's list yet. I would like to invest $50 only. What would you suggest? Do you have similar fund where I could invest or you would suggest someone outside of Dean Graziosi? Please be specific.
Thank you
I never knew
This is something I never knew about. I kept reading/hearing the term. Now I know. Thanks Dean. Learning is living...
Notes for sale
I have seller financed real estate notes for sale I also buy notes.Post a note and get a free quote at www.cash4cashflows.com/gmcclatchet
To answer the questions about REIT charts.
REIT = Real Estate Investment Trust
Think of it as a mutual fund for real estate. If you have only $50 or $50,000,000 and want to invest the real estate market. Not by making actual deals, but banking on the idea the market will go up say 6-10%+ year over year for example. You can buy shares of these REITs just like you could be shares of IBM. Your investment goes in a fund that the investment company uses to go buy properties or otherwise leverage real estate.
As the value of the properties increase or income is derived from sales or lease the shares are worth more. Basically, they invest your money for you on a large scale. These investors may even be ones who buy up your deals you find.
The REIT charts represent two different things. The Index chart is a index of how all REIT's combined are performing. A REIT can be all types of real estate, or very specific, like only: commercial, apartment complexes, residential, etc...
The Index gives you a pulse on how the equity markets feel about real estate in general, all forms. The residential chart shows the most popular residential REIT traded to give you a clue about strictly how residential real estate is being perceived by traders.
Traders, brokers and your average person buying stocks on their PC are not real estate investors, so the REIT can't give you the best picture, but they are people who are betting their money on an outcome, and some of them are pretty smart - so it is worth seeing how other people feel about the real estate market at any given time.
This is just scraping the surface, but it enough for the purpose of the way you will care to look at for the most part.
Question about REIT
If an REIT is like a stock and you invest in it, do they pay dividends like a stock? (Like quarterly, semi annually or whatever)
Regarding a REIT
Yes, they do have to pay dividends as they are REQUIRED by IRS to pay out 90% of their profits to retain their status as a REIT.
Funding
I have read that there is NO legal requirement for the down payment. I repeat NO LEGAL REQUIREMENT for the down payment The only requirement is that CONSIDERATION is made. Comments. It has been the lenders, agents or brokers that have made the requirement.
IRA
With the NEW rules from Fannie Mae/Freddie Mac. Do the rules apply to anything that is in a self directed Roth IRA? It seems foolish to limit an IRA to just a few properties.
That helped a whole lot. TY!
That helped a whole lot. TY!
REIT
Great to information to know. I had not paid much attention to that section before.
Kathleen
I appreciate knowing about this investment, REIT. Can someone pick specific land REITs? For example, suppose I'd like to invest in an REIT account that bets available land or properties between Phoenix and L.A. will go up, would there be a way to invest in specifically that?