Saturday, June 20, 2009

REITs and Real Estate Mutual Funds Investing - Scams

REITs and Real Estate Mutual Funds Investing - Scams
by: Robert Shumake



As you begin your investing life, you may have a lot of thoughts in your
head about how investing works and how you acquire and sell stocks,
bonds, mutual funds and other commodities on the stock market. Before you
start throwing your money around you need to understand that most days on
the stock market are not like what you have seen in the movies.

Often in the movies you see a person get a 'great tip' and run to buy up
that stock and make a fortune. They are buying and selling as quick as
they can when tips come in and while they may have started with a few
dollars, suddenly they are a millionaire.

Real life is not like the movies. In real life more often than not those
great investing tips are scams. They may come in the form of e-mails that
offer just you a hot tip about the next big thing that will be hitting
the market.

The only person who is going to profit from this deal is the person who
sent you the e-mail. Usually they are the owner of a company that will
profit when everyone jumps onto that stock. They will sell to you for a
higher price and then when the stock goes to it's real value, which is
much lower than the hype has made it, they will reap the profits while
you will lose your hard earned money.

Instead, you should only put your money into wise investments. One of the
wisest is real estate. Sure, real estate, like every other market, is
dealing with a tough time right now. But that does not mean it is going
to fall through the floor. Instead real estate mutual funds and REITs
have the benefit of a little more stability since they are built on the
foundation of a tangible asset – real estate.

In addition to knowing which market to invest in, there are plenty of
avenues in those markets. While you could purchase individual stocks or
bonds, you may want to go with something a little more solid and diverse
like real estate mutual funds and REITs or real estate investment trusts.
The reason these are more solid is that they are not putting all of their
eggs in one basket. Instead the real estate mutual fund or REIT basket is
filled with a number of real estate related stocks and bonds and
therefore you are getting a lot of shares for one buy in.

The hard part is often picking which one you want. By going onto a
website like REITBuyer.com you can look at the latest news and research
on real estate mutual funds and REITs. REITBuyer.com is the first and
only online brokerage specializing in REITs and real estate mutual funds
so you will have all the information you need at your fingertips without
having to dig through information that is useless to you. Once you've
selected the real estate mutual fund or REIT that is right for you, you
will also be able to make a purchase and watch your portfolio in the same
place.




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

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