Sunday, May 17, 2009

Real Estate Investment Trusts as an Alternate Income Source

In today's world you can never have enough money put away if you need it. When was the last time you really took a close look at the investments you have and what they will be able to do for you in a worst case scenario?

What type of worst case scenario? Well there are a lot of things that can happen that have you looking for a little money to help you out:

Losing a Job – What would happen if you were to lose your job? Do you need that money to be able to pay the bills and keep a roof over your head? Well consider if you lost your job what you would do to be able to continue paying those bills. While you would hope to be able to get a new job immediately, you never know if there will be something out there. In today's very high unemployment environment, it could be very hard to get a job if you need one.

Health Problems – What if you were to become ill and unable to work. While there are some programs that will help you for a little while if you are unable to work because of health problems, those are not a permanent solution. Having money put away that can bail you out would be priceless in a time like this.

Family Needs

What if someone in your family were to become ill and needed full time care. It is possible you could be the person who needs to give that care to them, but that will also mean you can no longer work like you used to. Therefore you need a backup money plan to be able to take care of your financial obligations while still taking care of your loved one.

Now that you understand why you need to have a source of alternate income it's time to figure out what kind to have. First and foremost many people have retirement plans, Roth IRAs and 401Ks to work with. But after you have created those accounts, you may want to do more.

You could just sock money away in a savings account, but that is not going to grow at a rate that you would like to see. Instead, why not invest?

Investing may sound risky, especially in this economy, but the key is knowing where to invest.

One market that always stays stable is the real estate market. While it did see a bit of a dip during this last year's down economy, it did not take as massive of a hit as other sock market offerings. And at the end of the day, real estate always has value, while other stocks, bonds and Wall Street offerings could well lose all their value and disappear.

This is why many people choose real estate investment trusts (REITs) and real estate mutual funds to put their money into. These are investment portfolios that are more stable than other investments, yet have a good chance for much better returns than a bank account.

When you are ready to look into this investing, make sure to go with a brokerage that knows what they are doing. is such a company. Not only are they the first and only online brokerage firm that specializes in real estate investment trusts and real estate mutual funds, but they also offer you a world of resources that are geared specifically to your investment interest.

This article was written by Earl E. Bird, III, spokes person for the, a website designed to educate investors on REIT buying and investing in Real Estate Mutual Funds. Whether you are a savvy investment guru or a new investor looking for guidance, has everything you need to be successful. Learn more about investing in Real Estate Stocks at

Thursday, February 26, 2009

REITs that Purchase Apartment s like the "Villages At:" Cupertino: Are Right

If you are looking for the right place to put your money, you may want to start looking into the real estate market.

If you have been following the media reports, there have been a lot of drops in real estate investments in the past year. Real estate has been a painful road to travel for many people and unfortunately many who had bought homes are struggling, losing those homes and having to give up on them.

While this may all sound like bad news for the real estate market, there is also a good side to all of this if you are investing. All of these people who have to leave their homes also have to go somewhere. For many this means they are moving into apartments as they try to regroup and start over.

This can be a boon for those who have investments in the apartment industry. While this is not recommending that you go out and purchase an apartment complex like any "Villages At", you may want to look at some interests in the apartment sector. One way to do this is through real estate investment trusts or REITs.

A REIT is a fund that shareholders purchase a portion of in order to become part of a real estate investment group. It could be that it is a real estate construction group that is going to build a new apartment complex or perhaps you would prefer to get in with a real estate management group that is already running a complex.

The way you make money from REITs is through the money they make from their customers. The more people are renting those units, the more money the REIT makes. In the United States, REITs must give at least 90% of the profits they make in a year back to their investors.

With the numbers of people losing homes and moving into apartments, like the "Villages At" Cupertino in Cupertino, CA, that means there well could be a number of new leases being started up. That translates into more profit for you in those dividends from the funds.

Before you jump into anything, it's wise to do your research and know what you are getting into. In this case that means getting to better know the world of REITs and finding out what is out there and how they have been performing.

Begin this research by going to This is a website that will have all the ins and outs of REIT buying as well as a lot of great tips and tools to help you in your investment purchases.

As you look through past performances, make sure you also look at overall market movements in that time period. Remember, we are coming out of an economic tough time and that means things will still look a bit rocky. But you are also looking at a market that may start to get better because of this situation.

Next, you will have to choose which REITs to purchase and make the buy. With you can do that all in one place as in addition to being an information source they are also a complete investment real estate broker.