OfflineA REIT or Real Estate Investment Trust is a company that many use their invested money in real estate. This money can be used to purchase commercial and residential properties. Some Reit's will also finance real estate.
Most Reit's that we are aware of are traded on the stock market publicly. To be considered a Reit the company must distribute 90% of the money they receive in real estate.
Stock holders in a Reit are paid from the dividends of the stock just as other stock may pay out but the stock is secured by real estate.
Reit's can come in three forms:
1) Publicly Traded Reit's (they are on the stock market)
2) Non-Exchange Reit's (they are regestered like stock but not traded publicly.
3) Private Reit's (we can create these)
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Creating a REIT should be done with a lawyer specializing in stocks such as an SEC lawyer or investment lawyer.
Once you know you want to create an REIT you must have:
- At least 100 People investing. This can include yourself.
- 50% of the REIT can be help by five or fewer investors.
- The Reit must have a board of directors or trustees.
- REIT must have at least 75% of is assets in real estate.
- 75% of the income for the REIT must come from rents.
There are a few more details that the lawyer can help fill in but this will get you a start.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
The REIT is a GREAT idea for those wanting to invest in large commercial properties. Many that come into real estate have their eyes on large numbers. After a short time in real estate and talking to others they let go of their goal of investing large. Getting a group together that invests (REIT) is a way smaller investors to keep their goal and invest very, very large.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
The article suggests ways that people can increase their income. They include doing consulting work in one's field, investing in a global dividends fund, buying a real estate investment trust (REIT), moving cash in a bank account to a peer-to-peer lending site like Prosper.com or LendingClub.com, where yields can top 13%, finding a part-time college teaching job, and generating money from a leisure-time activity. Income potential is mentioned for each idea.
http://money.cnn.com/2009/11/20/pf/boost_income.moneymag/index.htm
The idea: Buy a REIT fund. Real estate investment trusts, which invest in income-producing property like offices and malls, aren't taxed if they pass 90% of taxable income on to investors. So yields are typically higher than those of dividend funds. The catch: With rents and occupancy rates reduced by the recession, it's more challenging for REITs to maintain those dividends.
How to do it: Given ongoing concerns about commercial real estate, REITs should make up no more than 5% of your portfolio, says Morningstar analyst Andy Gogerty. He suggests the T. Rowe Price Real Estate (TRREX) fund, which he says has strong management and avoids riskier bets.
Income potential: A $25,000 investment in the T. Rowe Price fund, now yielding 4.76%, would earn $1,190 in a year. (Be aware that most REIT payouts are taxed at ordinary income tax rates, not the more favorable 15% for qualified dividends.)