High yield real estate investments: Secured investment

Every small-scale investor to large-scale investor is aiming for higher profits with very low to the negligible amount of risk on their investments. Since 2008, United State (US) economy has seen many critical situations until the year 2011, as economists of every industry in US have seen depressed share values during this time. These situations have provided yet another reason to every investor to find out high yielding yet a capital saving investment option in their portfolio.

What is important in this context is taking into account, high yield real estate investments that will help you in getting a better idea of this prospect.

Real estate investment

One of the most secure investment options is a Real estate investment; whether its real estate funds, directly or indirectly invested with real estate investment trust (REITs) or direct buying a property. There are many compelling reasons to invest in high yielding real estate investment plans, few of them are:

  1. Real Estate is physical and tangible asset that does not depend upon any person’s performance.
  2. Real estate is impervious to inflation because of which real estate investments tend to lower the volatility across the entire investment portfolio.
  3. Real estate offers capital value return on their investment. In case of cost of property is paid off, rent is profit on investment.

By getting more knowledge on private equity real estate funds you will be on the safer side.

private equity real estate funds

 

Real estate investment funds (REI fund) and REITs

AnREI fundare invested directly or indirectly in commercial properties ranging from offices, warehouses, hotels, shopping complex, hospital, etc. by REITs. REITs are companies that owns and many cases controls the income from real estate. REI fund is a regulation D rule 506 security filed with the Securities and Exchange Commission and State Regulation Departments in U.S. It is mandatory to every REITs to distribute 90% of their taxable income in the form of dividends to shareholders. REITs help in avoiding incurring liability of the U. S. Federal income tax.

There are two main types of REITs; equity REIT and mortgage REITs. The rent on real estate is a source of revenue for equity REITs, while the source of revenue for mortgage REITs is interest on mortgage loans. There is a third type of REITs known as hybrid REITs that are a combination of equity and mortgage REITs. A high flexibility and lower investment entry costs make REITs beneficial investment. The mortgage REITs are more beneficial than equity REITs. At the same time, equity REITs depends on assets and capital gains are more profitable.

There are private REI fundsthat assureshigh yield in the range of 6% to 15% of their investors. REITs help the investor to diversify investment risk, high performance income investment and lucrative annual yield with their professional and effective risk management approach towards REI funds.

Time for you to check out high yield real estate funds!