Real Estate Mutual Funds

Category: Finance, Real Estate.

Direct real estate investing means direct ownership of properties.

Whenever property management is outsourced, the investors give a important part of their returns to management companies. If the properties are apartments, single- family homes, retail centers or, office buildings warehouses that are income producing, the investors are expected to monitor daily management of the property. Moreover, property managers should be employed, but the major decisions like capital improvement, expenditure, repairs, sale, setting rent rates and the timing of sales, which affect the property should be done by investors. There are many successful realty investors who work in the realty business as real estate operators. If these investors are rehabbers or flippers, real estates turn more into a business than investments. There are many who would like to seize potential capital appreciation of investments and the high yields, but want to avoid the time commitment and management hassles in direct property ownerships. In both cases, they can opt for real- estate investments.

On the other hand, there are some who are retired and on the look out for opportunities in the stock markets. Types of Real Estate Securities. Real Estate Investment Trusts or REIT are companies, manage and own, which operate realty that are known for being income producing. REIT. These are organized and whatever income is produced is taxed at the level of the investor only once. Therefore Real Estate Investment Trusts are high yield vehicles which offer prospects for capital appreciation. According to the law, REITs should pay a minimal 90% of their net income as dividends to the shareholders.

At present, there are approximately 150 openly traded REITs. REIT basically specializes according to the region and the type of property( apartments, office buildings, malls, hotels, etc, warehouses) . The shares of these REITs have been listed on NASDAQ, NYSE or ASE. An investor could, in the case of ownership of high quality real property, and is also, professional management expecting dividend yields in the 5- 8% range and an opportunity for a long- term capital appreciation. More than 100 Real estate Mutual Funds exist. Real Estate Mutual Funds. Many of these invest in selective portfolios of REIT.

Real estate mutual funds usually offer professional management diversification, and high dividend yields. There are others who choose to invest in, REIT as well as other openly traded companies, which have real estate ownership and realty developments. However, investors end up paying expenses and management fees at two levels. Real Estate Limited Partnerships. One of these sets being the REIT management and the other being the management fees of 1- 2% , that are additionally paid to managers of the mutual funds. Limited Partnerships are another way of investing in real estate. However, the investors can still enjoy benefits of tax deduction and appreciation for total value of the property.

This is done without incurring any liability, other than the amount of investment. Developers and landlords for buying, building or rehabilitating rental housing projects can use limited partnerships by using others money. High Yield Private Mortgage Notes. Since there is a high degree of risk involvement, investors in Real Estate Limited Partnerships look out for earning 20% + yearly, on their invested capitals. Professional realty investors use High Yield Private Mortgage Notes for rehabilitation, equity cash or acquisition out of commercial and residential properties. The second trust deed positions have 15- 18% returns. Investors can acquire more than of 12- 14% market returns in first trust deed positions.

These types of loans are generally offered for one- year duration and provide monthly income with interest only payments.

Read more...

To Put That Great Deal Together You Have To Find That Motivated Seller - Finance and Real Estate Blog:

Becoming a real estate investor and a home flipping buyer is a great way to invest in the real estate market. Although sometimes it seems impossible to find them, with hard work and persistence they do exist.

PROPERTY MANAGEMENT COSTS - Finance and Real Estate Blog:

People talk about running the numbers before buying an investment property, but before doing that we need to discover what are the numbers and how do you get accurate numbers.

For The Rest Of The House, Just Be Sure There Is Plenty Of Closet Space - Finance and Real Estate Articles:

With so many questions to consider when buying a home, a buyer can get muddled in the myriad of details involved. In each residential neighborhood, houses will vary in total square footage and the number of rooms.