Many investors are put off by the real estate because they do not have the time or inclination to become landlords and property managers, which are, in fact, a career in itself. If the investor is a rehabbed or wholesale, real estate becomes more of a business and not an investment. Much Property successful "investors" are actually real estate "operators" in the real estate activities. Fortunately, there other ways for investors to benefit many people benefit from the investment of insurance and proof of property inflation, without the hassle.
The active participation of the investment property has many advantages. brokerage fees, charged by consortia, brokers, property managers and asset managers can be eliminated, which could produce a higher rate of return. In addition, you as an investor to take all decisions, for better or for worse, the ultimate responsibility is yours. In addition, active participation, direct investor may decide to sell when he wants to (assuming there is a market for their products at a price sufficient to pay all fees and taxes).
passive investment in real estate is on the other side of the room, which offers many rewards. Property Mortgage or assets are selected by administrators in professional real estate investment, which rose to invest full time, analysis and management real estate. Often, these professionals can negotiate lower prices than they could themselves. In addition, when a number of money individual investors is pooled, the passive investor can own a part of the property much larger, safer, more profitable and better form of investment assets of investors who operate with much less capital.
Most real estate purchase with a mortgage note for a large part of the purchase price. Although the use of leverage has many advantages, the individual investor would most likely have to personally guarantee Note, by putting their assets at risk for others. As a passive investor, the sponsor or owner of shares in a Real Estate Investment Trust would not risk of liability for the amount of initial investment. The direct investor's assets would probably not be able to diversify its portfolio. With property assets of only 2, 3 or 4 of investors can be easily damaged or removed by an isolated problem one of its properties. The passive investor is likely to have a small part of a diversified portfolio of properties, which significantly reduces the risk diversification. With a portfolio of 20 or 30 homes, one or two problems does not significantly hurt the performance of the portfolio as a whole.
types Passive REIT
REIT
Real Estate Investment Trusts are companies that own, manage and operate to produce income Estate. They are organized so that the income produced is taxed only once, at the level of investors. By law, REITs must pay at least 90% of The net income dividends to its shareholders. While REITs are high yield vehicles that also provide an opportunity for capital appreciation. There are currently about 180 REITs publicly traded shares are traded on the NYSE, ASE or NASDAQ. REITs specialize by type of property (apartments, office buildings, shopping malls, warehouses, hotels, etc.) and by region. Investors can expect with dividend yields of around 5-9%, ownership of real estate, high-quality professional management and a decent chance of appreciation long-term capital.
Real Estate Mutual Funds
There are over 100 real estate investment. Most investment in a select portfolio of REITs. Others invest in both REITs and other traded companies involved in property and real estate property development. Real diversification offer mutual funds, professional management and high dividend yield. Unfortunately, the investor ends up paying two levels of management fee, and a series of taxes on real estate investment management and additional management fees of 1.2% for the investment fund manager.
Real Estate Limited Partnerships
Companies Partnerships are a way of investing in real estate, without incurring any liability beyond the amount of your investment. However, the investor is still able to enjoy the benefits of appreciation and tax deductions for the total value of goods. LPS can be used by owners and developers to buy, build or rehabilitate housing for rent with money from other people. Due to the high degree of risk, Investors in limited partnerships expect to win 15% + per annum on invested capital.
Limited partnerships allow the centralization of management by the general partner. They allow the sponsors and promoters to keep control of their projects, while the new capital. The terms of the partnership Relationship Agreement in progress, are set jointly by the partners and sponsors (s). Once the partnership is established, the associated partner makes all day to day operating decisions. Partner (s) can not take drastic measures in the event of default under partners of the partnership agreement or by gross negligence, events that may lead to the elimination of the general partner. The LP of all shapes and sizes, some are public funds with thousands of sponsors, others are private funds with only 3 or 4 friends to invest 25 000 $ Each.
Don H Konipol has a BS in Economics and an MBA in Finance from the University of Michigan and is General Partner of the Managed Mortgage Investment Fund LP, a private limited partnership that invests in short term, high yield private mortgage notes. He is also General Partner of Real Estate Asset Management Fund LP, a private fund set up to invest in distressed property as 60% or less of value .He can be reached at 832.577.8838 or by email at dkonipol@yahoo.com.
[http://PrivateMortgageFinancing.com].
ABOUT DON KONIPOL
Don Konipol holds an MBA in Finance from the University of Michigan and a B.S. in Economics from the City University of New York. In 2002 he formed the Managed Mortgage Investment Fund LP as a high yield real estate mortgage fund, and serves in the capacity of General Partner. The fund invests in a diversified portfolio of short term, high interest real estate mortgages secured by investment real estate. Upon receiving his MBA in 1975, Mr. Konipol went to work for Societe General De Survalliance S.A., Geneva, Switzerland in investment banking.
He left in 1978 to come back to the United States and went to work as a commercial realtor for First Equity Company in Houston, Texas. In 1984 Mr. Konipol formed the Investment Realty Group to purchase distressed real estate at auction. Don has successfully invested in numerous real estate deals, operating businesses, high yield commercial mortgages, and REITs. He currently invests his capital and client/investors capital in real estate, real estate debt and real estate securities.
Don Konipol can be reached at (832) 577-8838 or emailed at donhkonipol@yahoo.com
Tags: no broker fee apartments Manhattan, no broker fee apartments queens, no broker fee apartments NYC, no broker fees apartments, no broker fee apartments Queens, no broker fee apartments Brooklyn, no broker fee apartments Bronx