Wednesday, October 17, 2012

How to profit from real estate without the stress and expense of being a landlord

A multitude of self-made millionaires (and billionaires) made their fortunes in real estate, often through the development of large-scale projects such as shopping centers or planned communities. On a smaller scale, there are many landlords with one or more rental properties earning them a monthly income.

If you want to profit from real estate but don't have the initial investment for a large-scale development and don't want to deal with the daily hassles of being a landlord, then this investment is for you...

In 1960 Congress created a special investment vehicle called a Real Estate Investment Trust (REIT) as a way to make investment in large-scale, income-producing real estate accessible to all investors. REITs are bought and sold just like stocks and have become quite popular with individual investors.

According to REIT.com, as of Jan. 1, 2012, there were 166 REITs registered with the Securities and Exchange Commission in the United States that trade on one of the major stock exchanges – the majority on the New York Stock Exchange. These REITs have a combined equity market capitalization of $579 billion.  (more)

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