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REIT’s – A Good Investment Opportunity?

By: Huntsville Real Estate Expert Mike Manosky On June 7, 2013

Investment alert:  According to RISmedia, the most significant innovation to hit the residential real estate market in decades occurred in 2012 to little fanfare: A first single family REIT (real estate investment trust) went public. For the first time in history, 2894159_blogeveryday people can now own shares of the American Housing Market, one share at a time. Not since the creation of the 30-year fixed mortgage can so much capital flow into the single family market as will flow into it in the next ten years, via single family REITs.

And what, you may ask, is a REIT? The letters REIT stand for real estate investment trust, which is sometimes called “real estate stock.” Essentially, REITs are corporations that own and manage a portfolio of real estate properties and mortgages. Anyone can buy shares in a publicly traded REIT. They offer the benefits of real estate ownership without the headaches or expense of being a landlord of a Huntsville AL home.

Howstuffworks.com advises that investing in income-generating Huntsville AL homes can be a great way to increase your net worth. But for many people, investing in real estate is simply out of reach financially. But what if you could pool your resources with other small investors and invest in real estate as a group? REITs (pronounced like “treats”) allow you to do just that.

As well as providing a tax benefits for investors, single family REITs provide a path to homeownership to everyone with a minimum down payment of one share. In this way, it is lowering the barrier to homeownership – to $100.  Imagine if, instead of buying a $200,000 house with 20 percent down, a family opted to lease a $200,000 Huntsville AL home and put the $40,000 into the REIT that owns it. They would then own shares in a portfolio of thousands of houses, including their own. Their down payment money would be in houses, including their own, and be completely liquid.

Simply put, real estate investment trusts (REITs) give investors a chance to invest in real estate without the added risk of buying real property.  Single family REITs offer a way for people to get in on the institutional investment of homes for conversion into rental units. The collapsed U.S. housing economy and accumulation of distressed homes has given large-scale investment firms an opportunity to buy in bulk, and now many are looking for public funding through REITs.  Click here for more info.

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Having lived in the Huntsville AL area for most of his life, Mike Manosky understands exactly what makes this community special.  In fact, those who know him well will tell you he carries the same traditional values and focus on the future as Huntsville.

Mike brings with him a keen eye for the details of buying or selling a Huntsville AL home and seemingly boundless determination and energy, which is why his clients benefit from his unique brand of real estate service. Rooted in Tradition, Focused on the Future – Mike Manosky will help make the most of your Huntsville AL real estate experience. Give him a call today, 256-508-0211 Direct or 800-803-0053 Toll Free, and discover the difference he can make during your family’s move.

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