1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

DC Fawcett’s Tips – Real Estate Investment Trust

Real Estate Investment TrustREIT ( Real Estate Investment Trust ) is an organization or a company which either owns or finances income-generating real estate. Investors get all types of regular income streams, diversification, and long-term capital appreciation from the REIT. These companies pay the taxable income to the shareholders by way of dividend, for which the shareholders have to pay the tax on dividend income. DC Fawcett suggests the investors to choose the right REIT.

Why REIT?

REIT’s are known as total return investments. They provide high dividends and potential for moderate, long-term capital appreciations. They offer

  1. High Dividend Yield

    The dividend yield in a REIT is significantly higher than other equities.

  2. Income and long-term growth

    REIT provides long term returns apart from the returns from other stocks and bonds

  3. Liquidity

    Publicly traded REIT shares can be readily converted into cash as the trading is done in major stock exchanges.

How to choose REIT’s and their financial benefits

An individual might invest in a REIT that is listed on the stock-exchange. They also go to REIT mutual fund or exchange-traded fund. Profitable investment Investors also have the capacity to invest in public non-listed non REITs and private non REITs.

REIT stocks and shares are publicly priced in stock exchange- listed REIT’s like other companies. To assess the investment value of REIT shares, certain aspects are taken into consideration.

  • Anticipated Growth in EPS(Earning per share)
  • Anticipated total return from stock that is estimated from the price change and the dividend yield.
  • Current dividend yields of bonds, utility stocks and other high-income investments.
  • Percentage of dividend payout ratios.
  • Management quality and corporate structure

REIT’s financial benefits

  1.  What is the benefit you get into investing in REIT

    The market rewards the companies that consistently pay the dividend and has a growth in earning-per-share ratio and stock valuation metric. You need to make sure that

    • The company has the ability to increase its earnings unfailingly.
    • REIT management teams are able to reinvest the cash flow quickly and effectively while simultaneously developing other strategies to create new revenue opportunities.
    • Strong operating characteristics that uses the strategies for succeeding in competitive markets like effective corporate governance procedures, conservative leverage, acceptable accounting practices and strong tenant relationships.
  2. Earning measurements and ability to pay dividends

    You need to compare the amount of dividend for the previous and the current quarter and assess how much the company growth has improved in REIT earnings, which are generated by higher revenues, lower costs, and new business opportunities.

  3. REIT role play in retirement savings

    REIT’s are the main aspect when it comes to an investment portfolio and retirement savings. The REIT’s should pay at least 90% of their taxable income to the shareholders by means of dividend, making them a strong income-generating investment.

 Conclusion

In the last decade, investors, who has been investing in commercial real estate has switched on to REIT because of its attractive offers.

 

Save

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

House Flipping In Real Estate – By DC Fawcett

dc fawcett Real estateDC  Fawcett Real Estate Tips

Money earned by means of real estate flipping houses drastically changes everyone’s lives. For some, it is their profession and for others, it is a hobby. However, if you are making your career in this endeavor, it is the surest way of earning a steady income. A person can earn without going anywhere near the office or industrial park. Even if a person works for the entire month, their income does not match with real estate income. DC Fawcett warns against the bad investment or money invested in wrong areas which results in huge losses.

Mistakes made when flipping a house

Paying more than actual price

The purpose for doing house flipping business is to make profits. However, when you pay more than the actual price and fail to negotiate, at the time of buying it, the profit reduces when you sell them. To turn it into real profit, one needs to study the real estate market. A lot of research has to be made before buying the property such as comparing at what price your neighbor had brought.

Excess Investment

Another common misstate is investing too much money for personal finances. Even if the property is purchased at the said price, you lose out on your savings. Instead of that if you go for loans, there person need not repay the entire amount in one go.Down payment assistance program.

Incorrect cost estimation

After getting financial assistance, make sure that project lasts long as you would need a good budget to cover for the renovations and little left over for contingencies.

Leaving important upgrades

There is a saying that one should be shrewd with respect to money matters. However, keeping this thing in mind, people tend to go in for cheaper options, though certain upgrades cannot be ignored. The buyers focus on kitchen, bathroom and master suite. At the most, you can reduce the cost on stops on these rooms.

Neighborhood Ignorance

Neighborhood awareness plays a very important role in house flipping. If your house is surrounded with ugly houses & surroundings, flipping becomes difficult.

Getting into the deal without house flipping team – Though, it is possible to do it independently, having a team is even better to guide you when you are new in this line. You can trust

  •    Real estate attorneys
  •    Certified public accountants
  •    General Contractors
  •    Real estate agents
  •    Lenders

Fear due to bad experiences in this endeavor

Many fear to go from house flipping either due to bad experience because of becoming a scam victim or getting nervous at the time of purchase. However, one should overcome the fear and change their mindset.

Poor planning

Though you get innovative things in your mind, you need to chalk out the plan and get ideas about different types of renovations, budget and schedule. Lack of planning postpones the renovation which makes you lose more money.

There are many more mistakes that are being committed which when mentioned becomes a long essay.

 

Save

Save

Save