Should You Invest in Commercial Real Estate??
In short, YES. Real Estate, in general, offers many advantages over other investments such as:
♦ Gains through income and capital appreciation;
♦ Inflation-beating returns;
♦ Investment diversification;
♦ Tax Advantages.
♦ Gets your out of paper currency and into a real, physical asset;
BUT…Buying and Directly Owning Commercial Real Estate is DIFFICULT!!
♦ Traditional wisdom states that the average person can’t invest in high-quality commercial real estate because the purchase of rental / income-producing property is only reserved for “high net-worth” or “accredited” investors.
♦ Plus, beyond the large sums of investment capital and knowledge required to get started, physically owning and managing commercial property is a very time-intensive and daunting task…leasing, accounting, evictions, taxes, insurance, etc…what a nightmare!!
♦ Even single-family home rentals and small 2-to-4 unit apartment complexes are extremely tough for John Q. Public to get started with these days after the great recession and the biggest real estate bust of our lifetimes.
♦ With all these roadblocks to getting started, this makes the average person feel like there’s no hope for them to ever get started investing in commercial real estate….
Own Shares of Real Estate Investment Trusts (REIT Stocks)
Thanks to modern technology and financial innovation, there are now countless ways to own and profit from real estate investments of ALL KINDS without ever dealing with the physical property itself.
The easiest way for the average person to own / hold real estate nowadays is through the publicly traded equities market.
Real Estate: Simplifiedown a piece of the real thing
♦ Owning real estate through publicly-traded stocks has become much easier and more transparent, giving the typical investor a chance to benefit from owning real property without the hassles of operating the physical asset. That’s where we step in and help you navigate through the many choices available today!
Two Ways to Profitincome + capital gains
♦ Gain the full benefit of owning income-producing property. Real Estate stocks (typically REITs) tend to offer high Total Returns, which is the combination of current income (dividends) and capital gains (share-price appreciation). Our advisory seeks out securities that are safe, while still offering market-beating returns.
True Diversificationlow correlation to other asset classes
♦ Adding real estate to your investment portfolio has never been easier. REITs give investors true diversification through property type, location and access to capital markets (which mean they recover from recessions faster). Given the recent instability in today’s global financial markets, liquidity really is key.
Safetybacked by real physical properties
♦ Equity REITs own and operate physical commercial properties, which as a shareholder, means you own too! And by focusing on the highest quality, best managed real estate companies available, you can lower the overall risk in a diversified portfolio.
Incomeget paid while holding shares
♦ By law, an REIT must pay out 90% of its taxable income to its shareholders. This means REITs generally offer higher current yields than treasury bonds or other fixed income investments. REITs are great for retired persons that need income.
Capital Gainsgrow your portfolio value
♦ Over the long-term, quality real estate companies tend to create more value by growing net income (FFO in REIT-speak) from property improvements, development and strategic acquisitions. This usually results in steady share price appreciation over the long-run.
See How RealEstateStockholder.com Can Help You Navigate
the Publicly-Traded Real Estate Markets.
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