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Time to Buy Real Estate!!

Well is it? I always think it’s a good time to buy real estate. More and more folks out there are saying now it the

time. Most of them are financial analyst so the plug REIT’s. What is a REIT, its Real Estate Investment Trust. I look at it as buying shares in a company like any other stock you buy out there. But they buy and hold real estate.
Is that good? Well it depends I don’t view buying shares of a REIT as investing in real estate. How often are investors invited to take a tour of a complex? They’re not!

Why are they saying it’s a good time to invest? Well it is. A lot of real estate is on sale both commercial and residential. Both they can’t make a commision off you if you actually buy real estate. So then they plug Buying REIT’s.

The issue I have with REIT is control. You can’t dictate where they buy. What they buy. Who they put in the units. After that with everyone’s hand out for income what is the investor left with at the end?

If you are a direct investor you cut out a lot of people looking to profit off your investment. The most you have in the broker that sells you the

properties. The Property Management Company (if used) will run the property and it is their duty to make sure income in coming in and that issue are addressed in the property. That is why many direct investor see higher returns.
So keep in mind when you see an article, who wrote it? Then the next step is to find the right REIT with the right management. Oh btw you can’t fire the management. I think it is easier to find the  property once and after that it is easy to fire management and bring on new management. So it might be easy to click your mouse and buy info a REIT, but is that not just investing in another security?

 

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1 comment

  1. David Piotrowski

    Thanks Agar please be sure to sign up for the Newsletter :)

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