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Getting Started in Real Estate Investment Trusts
Book

Getting Started in Real Estate Investment Trusts

Wiley, 2006 更多详情

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Editorial Rating

7

Qualities

  • Applicable

Recommendation

With the stock market seeming always ready to freeze or fall, author Richard Imperiale believes that investors who want cash return and diversification should consider Real-Estate Investment Trusts (REITs). You may remember some nasty history in decades past associated with shadowy real-estate tax shelters, but the U.S. Congress cleaned that mess up and created this rather stable investing medium instead. REITs' magnetism comes from their required payout from income, their ease of entry and exit, and their overall return, which usually matches stock market results. This makes REITs a nice way to accumulate wealth and line your 401k retirement pillow. Of course, since REITs are publicly traded, they face the stock market's uncertainties. After the "getting started" chapters, the author gets into the nitty-gritty of REIT securities analysis. As a boon for the very serious investor, Imperiale analyzes numerous real-estate sectors. He asserts that a substantial REIT infusion of 5% to 20% should make most portfolios "juicier," but he does not emphasize REITs' market negatives or today’s erratic real-estate market. So with an added dose of caveat emptor, getAbstract recommends this book to people looking for access (without heartburn) into the numerous opportunities in the multitrillion dollar real-estate market, including a quick getaway if needed.

Summary

How to Get Started

A whole school of economics is based on the concept that wealth originates in real estate, that is, in land and its uses. The total value of U.S. institutional real estate is $11 trillion. That's neck-and-neck with the value of all U.S. equity markets. Institutions, especially life insurance companies, love real estate because they can match its somewhat reliable rents and other income against their future liabilities. The appearance, rise and boom of Real-Estate Investments Trusts (REITs) are the results of this basic economic reality.

REITs are investment companies that can own and operate real estate, from giant malls and skyscrapers to hospitals and storage facilities. Different kinds of REITS appeal to various kinds of investors. REITs can be public or private, and they include specialized mutual funds. Investors, big and small, like this asset class because of its relatively dependable income and, in some cases, its tax advantages. The REIT passes these perks along to its investors. REIT shareowners are in the catbird seat since U.S. tax code requires every REIT to pay investors a minimum of 90% of its net earnings as "ordinary income, return...

About the Author

Richard Imperiale heads a company that manages about $450 million, much of it invested in equities, including REITs.


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