What is real estate investing and is it good to invest in it?

By Trading Pro Course Advisor · March 24, 2010 · Filed in Investing

Im in 12th grade about to graduate and plan on investing, How would you invest in real estate threw ETF’S? or something else? are their any negatives investing in real estate?

An ETF for REITs you mean?

Any way there are several ways you can begin to invest in real estate. A REIT or real estate investment trust is a kind of stock that represents a share in a RE investment company. REITs usually specialize in rental housing or commercial property. There are many specialties within these categories as well. Law requires REITs to pay out almost all income back to shareholders as dividends. REIT shares are usually pretty easy to buy and sell, so they are a decent way to start.

If you want to be a real real estate investor however, you have to buy and lease or sell property in your own right or with partners. One of the key reasons for this is leverage. When buyinf REIT shares you are buying straight-up equity. But when you buy a shopping center or rental house, a bank will lend you part of the money to buy, freeing up more cash to make improvements or buy additional properties.

This ability to leverage, receive income and tax deductions while realizing capital appreciation, (real estate inflation) over the long term is what makes RE investing so powerful. Most rich people in the US made a substantial portion of their fortune through RE investing, Good luck

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References :

An ETF for REITs you mean?

Any way there are several ways you can begin to invest in real estate. A REIT or real estate investment trust is a kind of stock that represents a share in a RE investment company. REITs usually specialize in rental housing or commercial property. There are many specialties within these categories as well. Law requires REITs to pay out almost all income back to shareholders as dividends. REIT shares are usually pretty easy to buy and sell, so they are a decent way to start.

If you want to be a real real estate investor however, you have to buy and lease or sell property in your own right or with partners. One of the key reasons for this is leverage. When buyinf REIT shares you are buying straight-up equity. But when you buy a shopping center or rental house, a bank will lend you part of the money to buy, freeing up more cash to make improvements or buy additional properties.

This ability to leverage, receive income and tax deductions while realizing capital appreciation, (real estate inflation) over the long term is what makes RE investing so powerful. Most rich people in the US made a substantial portion of their fortune through RE investing, Good luck
References :

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