INVESTING IN REAL ESTATE FUNDS AND REAL ESTATE INVESTMENT TRUSTS

In recent times a financial tool that can be added to your financial portfolio is the investment in Real estate funds or Real estate investment trusts (REIT). Areal estate fund is similar to a mutual fund or may even be called a mutual fund that is focussing on investing in securities in offer by the public real estate companies. The major portion of the amount in real estate funds are invested in large corporate properties and commercial properties while a small portion may be assigned to investments in raw lands, agricultural spaces or even apartment complexes. You can understand more by going through  https://www.behance.net/DavidGiunta .

INVESTING IN REAL ESTATE FUNDS AND REAL ESTATE INVESTMENT TRUSTS

Types of REITs

There are three main types of REITs, equity REITs, Mortgage REITs and hybrid REITs.Equity REITs are those that own, operate and trade with hard real estate assets. Mortgage REITs are those which trade mainly with commercial and residential mortgages. Hybrid REITs are a fine blend of both, the equity and mortgage REITs. The majority of revenue related to equity REITs come from the rent of real estate property, while the revenue for mortgage REITs is generated from the interest of mortgage loans.

Benefits of Investing in Real Estate Funds and Real Estate Investment Trusts

The major benefit of these investments is that you are able to invest on real estate with an amount as little as $500. In other words, it is possible to earn huge returns by investing a small amount. It provides scope for diversifying your long term portfolio.

Real estate funds and REITs are highly flexible and open up opportunities for investors to invest in a range of options from agricultural spaces to commercial complexes.

Instead of blocking a large portion of your earnings on real estate, you could invest in real estate funds as they give double benefit of investment as well as liquidity when you need cash.

These funds help investors reap the same benefits as that of a mutual funds but it is much safer and less volatile than the stock markets.

Investors in these funds, receive a professional support in decision-making which helps them to decide whether they want to invest in real estate fund that may or may not invest in REIT or invest directly in RIET.

How to choose a Real Estate Investment Fund to Invest?

As in all fields, there are real estate investment fund companies which have just emerged and there are some that have been in the market for quite a while, is headed by professionals and have a proven track record. You can learn more through https://www.behance.net/DavidGiunta experts about real estate trends and where to invest to get maximum profits.

A company with a good track record will be in a position to analyse and capitalise in the investment opportunities by virtue of their broad network which is manned by professionals. They are quick to acquire real estate that is worthy. They offer multiple choices to match the risk-taking ability of the investors.