Articles

Investment Performance of REITs

by creitadmin on May 20, 2009

The investment stability of REITs is a major benefit of this type of investment. Real estate investment trusts are designed to provide diversification. This ensures maximum investment security and steady income distribution. A diverse portfolio of real estate investments creates individual cash flow stability of a given property by combining the incomes of all properties. This minimizes the effects of tenant turn-over by dispersing the impact over multiple properties.

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Why is it Important to Own Real Estate?

by creitadmin on May 20, 2009

Time and time again, the market has proven it is important to own real estate. As an investment vehicle, real estate is the single biggest wealth-builder in history. Often depicted as a bear market hedge, real estate is a great investment at any stage of the economic cycle. Long-term appreciation, steady income, and physical asset backing provide a combination not found in other investment products. Furthermore, volatility and wide fluctuations, seen in the stock market, are avoided.

If real estate is such a good investment, why isn’t everyone doing it?

Many investors don’t have the capital to purchase real estate on their own. Nevertheless, capital can be pooled together to purchase real estate as a group. In addition, expertise may be lacking. For this reason, investing with a real estate professional or Asset Manager can provide specialized knowledge and instill investor confidence.

 

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Why consider group investments in real estate?

May 20, 2009

There are many benefits to group investments in real estate. The two major being: There is no minimum required investment. This removes a big barrier to entry that any single real estate investor may be faced with. Now, an individual with limited capital can invest in high-yield property investments and enjoy the benefits of cash flow, [...]

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Tax Advantages of REITs

May 20, 2009

Often overlooked, the tax advantages of REITs are quite compelling. Whether public or private, the tax efficiency of a REIT is much more attractive than that of any stock-issuing corporations. The latter is subject to tax on income before distribution, whereas a REIT is not. This translates to higher potential profits for REIT unitholders. This favourable [...]

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REITs — Group Real Estate Investing

May 20, 2009

Real estate investment trusts (REITs), as a form of group real estate investing, are a great way to capitalize on expensive properties. It is well-known that substantial profits can be achieved via larger investments. Investors with significant equity, such as builders or developers, can build and sell projects for a lucrative profit. Next, they re-invest these [...]

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REIT Profit Distribution

May 20, 2009

As established in the trust declaration, REIT profit distribution consists of the net income generated from rents, less a small amount needed to maintain a reserve fund. This ensures stable distributions and accommodates tenant turn-over. REITs tend to distribute a high percentage of earnings, often providing yields of 5-10% derived from cash flows alone. Unit holders [...]

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REIT Asset Management

May 20, 2009

REIT asset management is handled by a specialized Asset Manager, who provides leadership and guidance for the entire investment group. This expert is granted all the decision-making power, including the hiring of property managers, project managers, and acquisition specialists. The aim of the Asset Manager is to maximize capital appreciation, minimize expenses and tenant turn-over, [...]

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Private Real Estate Syndications

May 20, 2009

Private real estate syndications are a great way to pool capital with other established real estate investors. They provide access to larger, more lucrative real estate projects that a single investor could not afford. This form of group real estate investing provides an opportunity to participate that was previously unavailable. Private real estate syndicates invest [...]

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Investment Performance of REITs

May 20, 2009

The investment performace of REITs can largely be attributed to the strength of the Asset Manager. Often, a manager’s compensation is tied to the performance of the given real estate investments. This ensures maximum results as it’s in the manager’s best interest to maximum investment returns. At the end of the day, the success of the [...]

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