Sunday, May 17, 2009

Real Estate Investment Trusts and a Soft Market

If you have been considering getting into the investment arena in the real estate market, you may be wondering if you are doing the wise thing after watching the recent trends in the stock market and on Wall Street.

It's a soft market right now, we all know that. But that doesn't mean you should hide away from the investing world and wait until things are suddenly solid again. The truth is you should be doing quite the opposite. While a lot of people are losing money right now as the market softens, there are also a lot of chances to make a good profit right now if you know what you are doing and how to invest.

You see, while there are some markets that are having a tough time, there are a number of other stocks, bonds, mutual funds and investment options that are doing very well. What you need to do is know how to make the best of the soft market and where to put your money so it will grow.

Sound Investments

There are a lot of people who do not want to risk putting their money in an investment that could be gone tomorrow in a worst case scenario. That really does knock a lot of options off the table, but not all of them. There is one industry that is still going to have value, even in the worst of financial times – real estate. The reason for this is simple. While other stocks, bonds and investment options on Wall Street are based on business ideas; real estate investments are based on literal pieces of property. While those pieces of property can change in value, they will never completely lose their value. Therefore, purchasing real estate investments is a wise idea.

The next thing to think of when making sound investments is to not put all of your eggs in one basket. While you could just purchase one real estate stock, why not have a portfolio? Ok, so you may not want to have to put one together for yourself. Don’t worry. Instead you can purchase real estate investment trusts (REITs) and real estate mutual funds, which will put the portfolio together for you. Both of these types of investments are ready-build portfolios of real estate interests that you can buy into at a share price.

When you're ready to buy REITs or real estate mutual funds, you should also be careful whom you make your purchase through. Stick with a company like REITBuyer.com. REITBuyer.com is the first and only online brokerage firm that specializes in real estate investment trusts and real estate mutual funds. That means this is their area and whether you need to buy, sell or just do research on what your portfolio is doing or to consider a new purchase, their website is geared specifically towards real estate investors. This will allow you to have all the information you need without the hassle of having to work to find it.

This article was written by Earl E. Bird, spokes person for the REITbuyer.com, a site dedicated to educating Real Estate Investors on how to invest in Real Estate Mutual Funds to diversify their investing portfolio. Read more articles about REITs at http://groupfinancial.blogspot.com