Investing In Real Estate : Part I

Anthony Pierpont
Anthony Pierpont

Anthony Pierpont

There are different ways to invest in Real Estate.  You can buy REIT’s, do the buy and fix up, and purchase for rental property.  Even buying your own home to live in is an investment in Real Estate.  Some of these investments are long term investments and some very short term.  So lets look at them to see which is best for you.

The first we will talk about are the REITs.  This stands for Real Estate Investment Trust and is something your Realtor cannot do for you.  REIT’s came into existence in 1960 and was created by Congress to give Real Estate the same investment structure as a mutual fund.  When you invest in a REIT you normally are investing in a company that owns commercial rental property.  Such things as shopping centers or apartment complexes.  That said there are also REIT’s that invest in mortgages too.

It is important to note that REIT’s are publically traded so when buying into a REIT always talk with your investment counselor.  That said you don’t want to look completely clueless so ask him to check into Net Asset Value or NAV, Funds From Operation or FFO, and finally Adjusted Funds From Operations or AFFO.

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