Wednesday, December 30, 2009

Real Estate Stock with Consistent Returns

Real estate stock is worth looking into if you're looking for an investment that has consistent returns. REITs, or Real Estate Investment Trusts are known for consistent returns and can be a positive part of your investment portfolio.

Sure, everyone wants to find the next great investment, an investment that will bring them the big bucks and make them an overnight millionaire. Although this does happen, the cases of that are few and far between. Instead, you need to focus on making sure you have a diverse portfolio that will hold you through all times.

Consider this scenario. You see the next big thing coming. You sink all of your money into that particular thing and wait for it to reach the top. Before you get a chance to pull out, the market plummets, taking all of your profits with it and possibly even some of your principal. That's a horror story that comes true for plenty of investors year after year. The flaw in their thought is that they put all of their eggs in that one basket! When the basket toppled, everything went with it.

Now consider this scenario. You see the next thing coming and put a good portion of your investment funds in that arena, while also putting some of your money into more secure or long-term investments like real estate stock. Again, you wait for the investments to reach the top, but the bottom falls out sooner than you anticipate. While you may take a major hit on the one side, your long-term investment in real estate will still be there. You will still have a portfolio with some strength, versus one that is nearly empty.

Real estate is often considered the rock when it comes to investment, just ask Donald Trump who says, "It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate."

REITs are a solid real estate stock investment. If you look at the overall performance of the other stock markets and most mutual funds, you will see there is not much difference in the two for long-term returns.

When you're ready to start investing in real estate stock, you need to make sure you know what you're getting into before you buy. REITBuyer.com is an excellent resource that provides all the information you need to understand REITs, where they come from and how to begin investing. Let the investment real estate brokers at REITBuyer.com help you add REITs to your investment portfolio.

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