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Real Estate “Property Fund” Investing

You want to build a real estate portfolio, but you don’t want to deal with the hassles of managing an actual property. I’ve got two words for you – property funds. No, no property funding. This is not about being the bank. Investing in a property fund, like any other fund, requires research and know how.

HOW TO BE SUCCESSFUL? RESEARCH.

Other than beefing up your portfolio, what’s in it for you? How about minimum entry costs, for starters? Property investment funds can cost as little as $2500, which, when you consider the long-term benefits, most investors would consider “pocket change”. But before you fork over your 2.5 G’s, you gotta do some research. Yeah, I said it. Research. Quit whining like a girl, and listen up. Put your Sherlock Holmes hat on, and start investigating property fund management, their longevity, and their holdings. Remember, real estate funds should have minimum turnover rates and low fees. Pay attention to how the fund has performed over time. If rates and fees are high and performance is sub-par, run like Forrest Gump and don’t look back.

What about risk? When it comes to property funds, consider reducing your property investment risk with a REIT fund, which stands for real estate investment trust. REIT’s are, “liquid,” and no that doesn’t mean you can chill ‘em, shake ‘em, slam ‘em, then chase them with a beer. Liquid simply means that the fund is used for short-term fix deposits. Interestingly, REIT’s are also managed by a group of executive decision makers, instead of some cowboy ridin’ solo, and you know what they say about two heads…..
This is a long one, I know, but I’m wrapping it up like The Fabulous Thunder Birds, so hang with me. The beauty of property funds is that it’s absolutely possible to earn huge wealth without owning physical property assets and the stressful risks associated with them. Just like mama taught you, be thoughtful, considerate, and thorough when you invest, and with a patient approach – you too can make it rain like Lil Wayne.

 

 

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