Friday, May 22, 2009

Top 5 Advantages to Investing in REITs and Real Estate Mutual Funds

So, you know you want to put your money into real estate when it comes to investing, but you are not always sure of which real estate ventures you want to be involved in. What do you really know about the options out there? Well, we all know about stocks bonds and regular mutual funds, right? Those are the Wall Street offerings that area always being talked about. But what about some of the less talked about investment options like REITs?

While a lot of people think that REITs (real estate investment trusts) are nothing different than those other investments, the truth is there are some major differences and major advantages to real estate investing through REITs.

Professional Managers

Unlike when you do your own stock market investing and you rely on your thoughts and research to decide when to buy, sell and change your holdings, when you are working with REITs, you will have professional managers working for you. Generally those who are managing REITs are considered the best of the best in investing and are known for bringing great returns to their clients.


While many other real estate purchases you may make will have you bound to a literal piece of property and a lot of paperwork, REITs still let you get into the real estate market without all that hassle and hold up. That means if you need your money, or think there is going to be a turn in the market, you can pull your money out quickly, as it's as liquid as other stock market investments.

Low Buy In

If you have considered purchasing real estate in the past, you know it is not an easy proposition. To get into the world of real estate many people think that means buying a piece of property, which can be prohibitively expensive. This is where real estate investing through REITs and real estate mutual funds can let you not be left out of the game. The buy in for REITs can be as low as a couple hundred dollars a share in some cases, letting even the novice investor be able to get in on the action.


By having a number of investments that are focused on real estate in your REIT you are not focused on just one stock or bond, but a number of them in the portfolio. This gives you a stronger investing backbone if there are any fluctuations in the market.


The structure of REITs is different than that of other investments. 90% of the profit is returned to shareholders meaning you can expect to see dividend checks coming to you on a regular basis.

When you are ready to start investing in REITs, make sure you use a broker that knows this market. The best place to go is, as they are a specialized site that only deals with real estate investing. is the first and only online brokerage that specializes in REITs and real estate mutual funds.

This article was written by Earl E. Bird, III, spokes person for the REIT, a full service online information resource dedicated to assisting investors who are interested in learning more about Real Estate Investment Trusts (REITs), Real Estate Mutual Funds and how to invest in them. Visit to learn more.