| For many years, investing in the stock
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| | rents or mortgage payments, a REIT must
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| market was anything but easy. As an
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| | annually distribute as dividends to its
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| investor, you had to carefully research
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| | shareholders at least 90% of its taxable
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| which stocks to buy, decide how much
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| | income.
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| weight to give to the advice of your
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| | As with mutual funds, REIT shares are
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| broker, then monitor the ticker carefully
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| | liquid; shares can be sold at almost any
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| to determine whether to hold, and when it
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| | time. And, again like mutual funds, the
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| was time to bail out.
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| | investment is passive - the individual
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| But the advent of mutual funds provided a
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| | shareholder is only faced with one
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| much more hassle-free path to stock
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| | decision: which REIT to own. All other
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| market investing for individuals who
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| | choices are left to the REIT
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| liked the idea of turning over the
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| | administrators.
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| decision-making to experts. By buying
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| | On the other hand, a REIT doesn't give an
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| shares in a mutual fund, the individual
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| | individual owner any choice in which
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| investor placed his money in a pool,
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| | properties or mortgages are purchased -
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| alongside the funds of many other
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| | once you invest in a REIT, you accept the
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| shareowners, which was then used to
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| | decisions of others.
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| purchase a large portfolio of securities
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| | A REIT can certainly be a good choice for
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| chosen by market professionals. If the
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| | an investor who's looking for a way to
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| fund managers did their homework well,
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| | get involved in real estate while keeping
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| the value of shares in the fund would
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| | the complexities to an absolute minimum.
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| grow nicely; inevitable losses from some
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| | At the same time, you may also want to
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| holdings in the portfolio were offset by
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| | look into a land investment vehicle
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| broad gains elsewhere. And the mutual
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| | that's as hassle-free as a REIT, but
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| fund share owner had no day-to-day
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| | offers some other features as well. That
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| decisions to make, once he selected the
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| | vehicle is LandBanking.
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| fund that looked right for him. Finally,
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| | Unlike REITs, which are primarily income
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| mutual fund shares were liquid - the
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| | vehicles, LandBanking is aimed at medium
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| individual investor could pull money out
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| | to longer-term growth. The basic
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| of the fund much more easily than a
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| | LandBanking concept is nothing new -
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| conventional securities owner.
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| | acquire undeveloped real estate parcels
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| Today, the REIT - Real Estate Investment
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| | that are located just outside burgeoning
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| Trust - brings the mutual fund idea to
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| | growth centers, hold the land until local
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| the field of real estate investing. REITS
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| | expansion demands make it attractive to
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| are perfect for Individuals who would
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| | developers...then sell at a solid profit.
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| like to position their investment dollars
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| | While you can be your own LandBanker,
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| to take advantage of real estate's profit
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| | there are also LandBanking partnerships
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| potential, but are wary of the
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| | that make investing as hassle-free as
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| complications of conventional investment
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| | REITs. But in this case, your "share"
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| choices like rehabs or new construction,
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| | will be an interest in a carefully
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| or are too busy to acquire the skills
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| | selected land parcel, chosen by
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| needed to navigate the real estate mine
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| | LandBanking experts for its location and
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| field. Instead, they can now buy shares
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| | imminent appreciation potential.
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| in a REIT and let a team of professionals
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| | If you don't agree with their analysis,
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| navigate the mine field.
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| | you can just move on to the next
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| Almost all REITs fall into two
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| | opportunity. But if you agree, the
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| categories. They are either Equity REITs
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| | process is simple and straightforward and
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| or Mortgage REITs or a hybrid of the two.
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| | once you've become a LandBanker, you can
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| Equity REITS use their pooled funds to
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| | just sit back and watch your land
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| acquire income producing properties -
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| | appreciate with no hassles or headaches.
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| residences, office buildings, shopping
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| | If you'd like to learn more about this
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| centers...etc.. Mortgage REITs invest in
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| | LandBanking opportunity - and how it
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| income producing paper, by providing
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| | stacks up against REITs, as well as other
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| mortgages directly to property owners or
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| | real estate investment choices - you'll
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| operators or by purchasing existing
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| | find more information in the link below.
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| mortgages. In both cases, whether from
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