How to invest in reits

If you’ve ever rented a home or apartment or rented space for your business, you can guess how lucrative buying and then renting real estate — either commercial or private — can be. This is becoming more of an option for people who want a consistent cash flow and aren’t afraid to manage a few properties at once. If you’re in a business that buys, sells, and invests in real estate on a much large scale, working with real estate partners can also be a huge asset. More than ever, as the United States has seen how fragile the economy can be and how tenuous the rate of gold and silver is becoming, sinking assets into solid, tangible items like real estate is becoming more and more popular.
Terms To Know And What They Are
There are a few terms you’ll want to know about before getting started. It’s crucial to understanding how the entire system works.
Real estate partners:
Real estate partners are a team of like minded investors, who work together to create a larger real estate firm. They help potential investors handle cash inflows and outflows, what kind of schedule the cash flow operates under, and guides them through any potential danger in investing. This is especially true with commercial property. One of the benefits of working with real estate partners is that you can draw on several opinions and perspectives. Working with real estate partners may also be more lucrative, as there are multiple people pooling their resources. Depending on what you’re looking to invest in, such partnerships may also bring a more diversified set of real estate markets to the tabel: from office spaces and commercial properties to residential or land development spaces.
REIT stands for real estate investment trust. These trusts own and manage real estate that is producing income, like rent. They mostly deal in commercial real estate, but can also help finance some types of real estate.
Should I Invest In Real Estate?
The answer is yes. Particularly investing in commercial real estate can be especially lucrative. (Commercial real estate is real estate that is purely used for business, versus residential real estate, which is mostly living spaces for individuals or families.) A study done by IBIS World research showed that commercial real estate accounts for almost $950 million dollars industrywide.
For one thing, investing in commercial real estate allows you to have a constant influx of cash, from rent and other fees. If you rent to retail spaces, you may also get a cut of their profits. With any commercial property though, you have the option to charge for parking, institute vending fees, or receive tax benefits or credit.
Your options with commercial real estate are also fairly unlimited: you can choose from investing in offices, more industrial/warehouse type spaces, restaurants or shopping buildings, or apartment buildings.
See for yourself how lucrative such a business venture can be. That way, next time someone asks you “Should I invest in property?” you can answer with a confident “Yes!”