Real Estate Investment FundDo you want to own some estate property but you don't have money?! Real Estate Investment Fund is what you need! Over the past few years real estate funds have been growing in popularity. There are a great number of reasons for it, but the key one is that the funds have faced a shareholder increase. Most people invest in Real Estate Investment Trusts (REITs). What is REIT? It is a corporation of investors in real estate. REIT reduces or eliminates corporate income tax and distributes 90% of the income among the investors. REITs can be: 1. Equity 2. Mortgage 3. Hybrid
The major features of a REIT are: 1. Net Asset Value 2. Adjusted Funds From Operations 3. Cash At Disposal There are no limits for real estate combinations. And if a group of different REITs are in a mutual fund portfolio they bring multiplied revenue. As a rule Real Estate Funds do not buy single-families houses. They buy shares of REITs which own commercial properties (office buildings, shopping centers and apartments e.t.c.) At the moment the real estate market faces the process of private equity companies buying REITs and taking them off the stock market. The REITs that are still on the market are thought to be primed for takeovers or undervalued relative to what private buyers are willing to pay. The base for successful development of REITs and thus for Real Estate Investment Funds is the rapid development of the economy. A healthy economy means that more offices and workshops are rented and occupied. Still the investors aren't fully compensated for their risk, and the professionals claim that they have seen the phenomenon before when people think things can't go wrong |