Measuring Return on Real Estate Mutual Funds and REITs by: Robert Shumake

Before they purchase any stock, bond, mutual fund, commodity, REIT or anything else being traded on the stock market, smart investors try to measure what type of return they will be able to get on their investment.

This is a wise way to think. After all, you are not trying to throw your money away! While all investing has some risk and is somewhat of a gamble, there are those who treat it like gambling on a slot machine and just throw their money at any investment and others that appreciate what the market can do and are wise, knowledgeable investors.

Measuring the possible return on your REIT or real estate mutual fund investment is not as simple as you may think. Many worry that really understanding REITs or real estate mutual funds means they have to be able to do all sorts of very difficult research and be hunting down tidbits of information on the Internet. This is not the case. Instead, you can let someone else do a lot of that work for you.

REITBuyer.com is an online brokerage that specializes in real estate mutual funds and REITs. In addition to being able to make purchases and sales on their website, they also have filled it with a lot of the research and other information that will be vital to you having a better grounding on the investments you are considering putting your money into.

Begin by looking in their news section. This will let you see any news stories that relate to the REITs or real estate mutual funds you are thinking of buying as well as give you a chance to see what is happening in the news that could impact the market as a whole. Additionally, their research section will give you access to a number of tools and statistics that will allow you to take a closer look at how that particular investment has been performing in recent months and years and give you a better idea of what you may be able to expect from the investment in the future.

One wise thing to do is know of a few REITs and real estate mutual funds you are interested in purchasing and compare how two of them have been doing. If you only have enough money to invest in one, this may help you decide which is the best of the options.

Figuring out what you may be able to expect from a fund is relatively simple. Take a look at the total return on the REIT or real estate mutual fund over a year. This will be represented by a percentage. This number should be divided by the amount of money you are putting into the fund. The total you get from this math equation should be your profit from the fund if it's return remains consistent.

While there always can be fluctuations in the return on investments, many of which are driven by the state of the economy, this is still a good way to get an idea of what you may be able to make on an investment if you are willing to leave your money in for the long run.

About The Author

Robert Shumake's mission is to inform the public about mortgage fraud and real estate scams and to provide tips on how to avoid being a victim. "Sometimes people will commit identity theft to obtain a housing loan, sell someone else's house or take over someone else's property," says Shumake. "It is my goal to inform the public on how to protect themselves from being victims of this crime."

http://reitbuyer.com