Real Estate Investing Without Taking A Mortgage Part two..
Real estate has been one of the best performing assets for long time.
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Reasons to Be Thankful for a Great Real Estate Agent Working with the right agent can deliver big benefits for buyers and sellers alike.
Once you find an exceptional real estate agent, like Anthony Jeanty in south Florida you' ll soon discover plenty of reasons to be thankful for.
Anthony will be there for you during the difficult moments In the middle of a transaction that seems to be giving you more heartache than love?
Maybe its not the deal you thought it was, or something just doesn't seem right?
Anthony will be on your side, and looking to build a long-term relationship not just make a quick buck.
Home Sellers, Anthony will help get your house ready for sale in record time.
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Investment #1: Home Builder Stocks.
You see their signs up all the time for new developments, but did you know that several home building companies, such as Lennar (NYSE:LEN), KB Home (NYSE:KBH), Ryland Homes (NYSE:RYL), and D.R. Horton (NYSE:DHI) ETC. Those companies have public stocks that are traded on Wall Street every day?
Some of these companies pay investors a small quarterly dividend as well. Their prices tend to fluctuate with the rise and fall of the real estate market.
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Investment #2: Real Estate Exchange Traded Funds (ETF).
Some people fear individual stocks because stock prices can be quite volatile, and losses of 20% or more are fairly common if we get a bear market. One way to temper the volatility is to purchase an Exchange Traded Fund (ETF), which is a basket of stocks that contain a number of similar companies in a particular country, asset class, or sector of the market.
Suppose you like the idea of buying Home Builder stocks, but are afraid to buy just one, or don’t know how to tell which ones will perform better in the future.
To solve this problem, you can diversify by purchasing the SPDR S&P Homebuilders ETF (NYSE:XHB), which is a basket of several dozen real estate related stocks, including all of the homebuilders cited above. While the XHB may not rise as much as individual stocks, it also won’t lose as much value during a stock market or real estate downturn.
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Investment #3: Real Estate Related Retail Stocks.
Some retail stocks are very much tied to the performance of the real estate market. Three that come to mind immediately are retailers Home Depot (NYSE:HD), Lowes (NYSE:LOW), and Bed, Bath, and Beyond (NASDAQ:BBBY). And there are many more other companies like those above.
But even when homes aren’t selling, people may be renovating their current homes since they feel they may be living in them for awhile longer. So these companies will often perform well, even in slower real estate markets
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Investment #4: Housing Materials Companies
The companies that manufacture building materials used in residential and commercial real estate also benefit from real estate booms, as more construction is undertaken to meet the demand. These include companies like Beacon Roofing Supply (NASDAQ:BECN) and Louisiana- Pacific Corp. (NYSE:LPX).
But these companies stocks can also excel in lean years, because their stock price appreciation is often related to weather events.
When major hurricanes, tornadoes, and other natural disasters destroy large areas of cities and towns, eventually the homes, offices, and stores that are decimated will be rebuilt.
That means more roof shingles, wood siding, and other building materials will be needed in order to replace damaged structures. Demand for building materials elevates prices and the shareholders of these stocks then prosper.
Investment #5: Real Estate Investment Trusts (REIT)
Real Estate Investment Trusts are stocks of companies that own and operate real estate that produces income on a monthly basis. Most often these companies own commercial real estate, such as apartment buildings, strip malls, storage units, or office buildings.
REITs are known for paying high yield dividends on their shares, as they are mandated by law to return 90% of all profits back to the shareholders. It is not uncommon to have a REIT paying a dividend yield from 5% to 10%. REITs may not appreciate as much in stock price, but the large dividends make up for it, and provide investors with a strong total annual return.
Even during years of bad or mediocre performance, these dividend payments can be great income producers for one’s portfolio, and are especially good for retirees. As the baby boomers age, REITs that invest in Elderly Care residences like Nursing Homes, Senior Apartments, and Assisted Living Facilities may perform particularly well.
So there you have many ways that you can still participate in real estate investing without ever having to raise a hammer, or deal with tenant calls at Midnight.
Whether you are looking for price appreciation, or monthly income, there are investment vehicles for all age groups and types of investors.
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