http://bit.ly/how-to-make-money-in-real-estate Check out this video to learn about investing in REIT, which is a very lucrative way to invest that is not as known by the masses (and therefore not as competitive!) Find out how REIT investment can be a great tool for real estate cashflow, and how you can leverage it in your real estate investing business. After watching, check out the next video in the series http://bit.ly/Lifestyle-Properties-Part-1.
Video Script:
Hi everyone, this is Bill Miller, real estate investor in Austin, TX. In this video we will take a look at a very unique type of real estate investment, called REIT's. So let's explore what this is.
REIT stands for Real Estate Investment Trust.
Those who invest in REIT's buy shares much like buying shares for any other stock.
Typically these are excellent investments in a market where the demand for home buying is down and demand for renting is up.
The more renters there are in the market, and thus the more demand there is for renting apartments, the greater the profits in these portfolios.
REIT's come in a couple different flavors. There are traditional REIT's and mortgage REIT's.
Traditional REIT's are companies that manage large inventories of apartment buildings.
The two largest REIT's are Equity Residential (EQR) and Avalonbay (AVB).
These REIT's pay the investors 90% of their profits in the form of dividends.
Mortgage REIT's are companies that buy and sell mortgage backed securities.
What makes this really different is that portfolios of this sort are debt driven, and not based on real property.
The returns on investment for investors interested in purchasing shares for mortgage REIT's can be significantly higher than for traditional REIT's. These days, returns can be as high as 15-20%.
As with any investment, of course there is risk, and this type of investment isn't just for anyone.
It's a good idea to speak with your financial advisor and assess whether this would be good for you or not.
Because financial advisors charge their fee to you based on the results of your investing, if they are advising you to go after an REIT, then they obviously believe you'll win at one of these, so it would be in your best interest to go after one.
Next time...
We're going to really get outside the box, and we'll take a look at a type of investing that is not really well known, but it's very unique, very specialized, and can be very fun and profitable.
So that's next video. Thanks for tuning in, and my name is Bill Miller at
http://www.startrealestatewealth.com, and see you on the next video!
