Friday, May 22, 2009

Understanding Changes in Your REITs and Real Estate Mutual Funds

If you have a wise investment portfolio, it is likely that among the things you have in your name are a couple of real estate investment trusts (REITs) or real estate mutual funds.

These are both a good way to get yourself into the real estate market without having to be out tens of thousands of dollars or more.

REITs and real estate mutual funds are portfolios of stocks, bonds and other Wall Street offerings that are specifically geared towards real estate. Really, they could be nearly anything from construction companies that build new buildings to the real estate interests that are going to manage those buildings once they are built.

For most people the process of getting into REITs and real estate mutual funds is easy enough. They log onto a website like and look at all the offerings out there. If you know what you are doing it will not take a lot of research to find a REIT that is right up your alley and make a purchase.

While you can do this on any website, if you don’t want to wade through pages and pages of investment information that doesn't apply to you, you may want to stick with a site like The reason for this is that is the first and only online brokerage that specializes in real estate investment trusts and real estate mutual funds. This means the news, reports and trends you are going to read on their site all relate to the investing style you are going to be doing, instead of having to sort through all sorts of things that don't impact you to find the one that does.

As you do your research, you may find that there are a couple of REITs you really like due to the offerings inside the portfolios. This is usually the reason people purchase REITs in the first place. But, it is important to know that any of those investments inside the REITs and real estate mutual funds can change at any point in time.

The management team of the REIT is always watching the investment. And from time to time they will decide to get rid of some of the items within the portfolio and possibly replace them with something else.

Not all real estate interests are going to go up. It is the job of the investment manager to keep an eye on all the items that are inside of a REIT or real estate mutual fund and make wise assessments on what may be happening to those interests in the weeks and months to come. If they do not see a chance for growth, they may cut that investment free and replace it with a more profitable one. This is the same thing you would do to your own portfolio. The only difference is instead of you having to lift a finger you have a professional portfolio manager who is looking out for your money for you.

This article was written by Earl E. Bird, III, spokes person for the, a website designed to educate investors on REIT buying and investing in Real Estate Mutual Funds. Whether you are a savvy investment guru or a new investor looking for guidance, has everything you need to be successful. Visit for more information.