Arnold, Bruce & Doerfler Insurance Blog
REITs: A cheap way to get a home?
A Real Estate Investment Trust is a company that owns operates and finances real estate. They are similar to mutual funds, in fact, a very focused mutual fund. While mutual funds deal in some kind of investment instrument a REIT deals specifically in Real Estate only.
Let me tell you about how you can use this as your vehicle to get your very own home.
Real Estate is Always Going Up
Barring something along the levels of hurricane Katrina, real estate always increases in value; therefore, the underlying investment of a REIT is still accumulating in amount and benefiting the investors.
In other words, if we invest in REITs, you can be assured that the underlying investment will increase in value and if the time comes that you want to pull out of the REIT, you will get a lot more than what you initially put in.
REITs are Professionally Managed
Like Mutual Funds, the people who are handling REITs are professionals with many years of experience in the field. After all, no one will invest in a REIT if the management is not of proven competence.
Since the REIT managers are pros, they will only select sensible real estate to invest in and they will only hire competent people to manage the buildings they will invest in. In short, you can be more or less assured that these people know what they are doing and they will know a lot more about it than you probably do.
REIT Investors Get Perks
One very nice perk of REITs is that they usually offer their real estate at a discounted rate to their investors. This means that the REIT investor will be an investor and a customer of the company. If for nothing else they get to save money on the house they will eventually want to buy.
Another perk you can get is that the REIT might give you perks like pre-selling opportunities so they can have first pick on houses that are for sale or condo units that are for sale. After all the REIT investor is proven that he has some money, so it is a win-win for them.
So there's the path on how to get a house using REITs don't forget to get insurance for your new property though.
At Arnold, Bruce & Doerfler Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (503) 222-1951 or Click Here to request a free quote.
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