Real Estate Investment Opportunities

Investors are realizing the potential of real estate investments and real estate stocks. Because of the global economic crisis, prices are lower than average, and investors are viewing this as a good time to invest. Some investments have yielded significant returns in a single year. Experts recommend a diversified portfolio to vary the risk levels of various real estate investment opportunities. This may consist of a managed mutual fund, REITs, ETFs and bank stocks with real estate exposure.


Commonly, real estate investment opportunities rise from profit made from the purchase and sale of a property. These opportunities are often based upon the condition of the property, the location, the property value and the state of the housing market. Active and passive trading strategies are combined to minimize losses and maximize gains in the real estate industry.


Real estate opportunities may also arise from stock investments, property investments or foreclosures. Mutual funds, ETFs, public real estate investment trusts (REIT) and real estate holding corporations are common ways to invest in real estate. Real estate investments are intuitive to most individuals and are easy investment opportunities. Because of the global economic housing crisis, there are numerous lucrative opportunities for investors to consider.


In previous articles, we have discussed stocks, mutual funds and ETFs, in general. For the reader’s edification, we will briefly discuss REITs.

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Real Estate Investment Trusts (REIT)


Corporations investing in real estate with little or no corporate income taxes are commonly referred to as REITs. These corporations are required to distribute 90 percent of the total revenue or income to the investors of the corporation. REITs are structured similar to mutual funds and may be listed on the stock exchanges. There are three types of REITs: Equity, mortgage and hybrid.


Investors should consider the market capitalization of REITs, as well as, the dividend yield and payout ratio. The net asset value, cash value and the adjusted funds from operations are also important factors to consider. Because of the economy, investors must invest with caution. Investors may lose 40 to 70 percent of their original investment, if they are not wise with their selections.


Investment Opportunities


Some of the best known examples of publicly traded REITs include: Boston Properties, Vornado Realty Trust and Simon Property Group. In August 2010, American Capital Agency, Chimera Investment and Annaly Capital Management were the highest yielding dividend stocks. American Capital Agency yielded as much as, 20.5 percent and had a market cap of $911.5 million.


Experts also recommend banks with large commercial holdings.  JPMorgan Chase and Bank of America both have significant commercial real estate holdings. Western Alliance and Zions Bancorp were also recognized in this category.


Given that experts recommend a diversified portfolio, investors should study and use some of the aforementioned investment options to learn more about the historical movements of REITs and real estate stocks. Investors may use tools within the stock analysis software to determine the best entry and exit points into the market. This practice will help investors become more familiar with real estate investing.


Consider TopTenREVIEWS for advice on the best stock analysis software to analyze the real estate market. Our reviews can help you make a sound purchase that will assist with your investment strategy.

Real Estate Investment Opportunities