When it comes to making an investment, two of the most important things to consider (aside from the initial buy-in) is the future of the investment and the return. By the return, we obviously mean how much money you will make back. And by the future of the investment, we mean longevity – will it continue to grow at a rate that will not only beat inflation but provide you with good after-tax income in the future, or is it something that is hot now and will turn against your objectives in a flash? One of the best ways to avoid investing in something that is very popular at the moment and not later is to consider investing in something people always need. Take a doctor, for example – people who become doctors have knowledge and offer a service that will never expire. Regardless of the economy, location, or weather, people will always need to go to the doctor for some reason. Another industry with a similar demand is commercial real estate – the majority of businesses will always need a storefront as well as people requiring apartments/condominiums to live in. This reason is one of the many that makes investing in commercial real estate investment trusts (REIT) a smart decision.
What is a REIT?
A REIT – real estate investment trust – is a company that owns or finances income-producing real estate in a variety of property sectors. Typically, REITs invest in warehouses, retail space, office buildings, and other commercial spaces. Consequently, as an investor, you would invest in this company instead of individuals real estate properties. To be a REIT, the company must meet a number of requirements.
These companies trade on major stock exchanges, and also offer a number of benefits to you – their investors.
Why invest in a REIT?
Despite what you now know about REITs, you might still be asking yourself the big question: why? Keep reading.
Historically, REITs have delivered competitive total returns outperforming the S&P in some years. When compared to other assets, they have a low correlation which is a great way to diversify your investment portfolio and increase your overall return. Additionally, REITs provide a better long-term total return when compared to other stocks and provide you with immense transparency and protection.
Overall, they offer nearly everything you could want out of an investment.
There are several investment opportunities to consider and add to your list, and REITs should definitely be a contender. Do your research and take a look at some of the top REITs to invest in. The bottom line is investing in a REIT could really improve your bottom line. As always, for more guidance and information, you should contact an Investment Specialist at Triton to guide you to some fantastic REITs to get started investing in. E-mail us for more information at firstname.lastname@example.org.
La Mancha Sims is Managing Director and Founding Partner of Triton Business Group, Inc., a business funding consulting firm located in Decatur, Georgia. La Mancha is a former Naval Officer who has over fifteen years of experience in franchise and commercial finance, specializing in assisting entrepreneurs who want to enter the franchise industry as owners or investors. You can reach La Mancha at 866-987-4866.
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