Tuesday 27 October 2015

Global Top 4 Real Estate Mutual Funds



A mutual fund is managed professionally and reflects performance of bonds, stocks and many different securities. Mutual fund shares can be purchased just like stocks of companies. The value of shares is calculated every day on the net asset value of the funds.

Real estate mutual funds require investment from securities from over the world. Investments in mutual funds vary from real estate bonds to real estate securities. This fund also offers an opportunity to purchase investment properties as alternatives.
Jeff Adams Real Estate


FIDELITY INTERNATIONAL REAL ESTATE FUND
This fund is intended to be a buy and hold investment which offers a long term growth. Investment is done in real estate securities that are based out of US and relocation of realestate investments is carried out in various regions. $397 million has been accumulated in net assets.  This fund has a net expense ratio of 1.38%.


VALIC COMPANY I GLOBAL REAL ESTATE
Though not renowned, this fund certainly falls among global real estate mutual funds. The fund is advised and offered through the Variable Annuity Life Insurance Company. The sub advisors of this fund are Goldman Sachs Asset Management and Invesco Advisers. This fund has 42% investment in US real estate stocks. The prime focus is one the smaller large cap and medium cap companies. This fund’s turnover is 41%.


THIRD AVENUE REAL ESTATE VALUE FUND
This fund is the global real estate investment fund for investors who have plenty of money to put in as investment. This fund falls under the giant category with more than $3 billion assets. The management staff is high profile and fairly consistent. This fund has been designed for just the institutional real estate investors with the minimum investment amount being $100,000.

This fund features an interesting portfolio. 75% of investment is in REIT securities or real estate. 17% of the investment has been held as cash. The fund is associated with consumer cyclical, basic materials equities and financial services.



DFA INTERNATIONAL REAL ESTATE SECURITIES PORTFOLIo
This fund focuses on non US real estate investments. With $3.3 billion assets, this fund is hugely popular. A net expense ratio of 028% is carried by this fund. This is below the average of the real estate stock globally. Stock selection is done by the fund managers with a market capitalization.

No aggressive approach is employed by this mutual fund and it is good at picking up stocks from successful and large real estate companies from around the world thus offering its shareholders efficient returns on the investments made.

Strong and stable, this fund doesn’t win any points for the best returns offered on real estate investments made. This fund is apt for real estate investors who love long term investments and wish to gain clarity in the underlying philosophies of investments. The DFA International Real Estate Securities Portfolio has beta of 0.85 against the best fit index and a Sharpe ratio of 0.73. For the period of August 2015, the DFA International Real Estate Securities Portfolio had a 12 month yield of 6.28%.

###

Thursday 22 October 2015

Things to know about the real estate laws for the investors



If you are considering starting a career in real estate investing, whether it is part time or full time, you should be mindful of the numerous legitimate ramifications that encompass real estate properties and comprehend which ones apply to the kind of project that you are interested in. Obviously, your first port of call should be to address a specialist in the subject of real estate property law.

They will have the expertise to furnish you with a lot of data about what applies to you and the issues that you may confront with the speculations that you are considering. Then again, there are additionally various real estate tips that are vital to remember before you put any cash in the real estate property.


Be Organized
The main thing you have to do before making investment into anything is to have complete familiarity with your current financial circumstance. You should have the capacity to set a strong spending plan that doesn't make you get stuck in an unfortunate situation if a real estate investment turns sour and you have to see where your cash is going and also what kind of profit you are getting for it.

As suggested by Jeff Adams real estate guru, you will require contracting an affirmed accountant who can stay informed regarding where your advantages lie at all times and will have the capacity to inform you of any adjustments in law that may affect your real estate investments. This is something that you have to consider before you opt for the investments in real estate projects.


Be Aware of Local Issues
For the first time real estate investors, land and individual property duty are going to influence each project that you make, so it is vital to be careful of what these are and which of your investments they influence.

You should have a spending plan for each and every year, so don't neglect your focus and ensure that they are constantly incorporated into your figures.

Diverse regions will have distinctive rates of both sorts of expenses, so you should be careful of what the individual rates are before you invest. It can come as a surprise to the framework if your investments into a property outside of your usual range of familiarity, just to find that you are required to pay a higher rate of expense for the joy.


Know Where to Make Savings
In the present real estate market, an accountant who sees land will likewise have the options to bring up ways that you can save money on the tax you pay, depending on the investments that you make. This is especially helpful for individuals who are leasing the real estate properties that they claim.

Moreover, you ought to be careful of the 1031 trade, which permits you to concede the capital profit tax collected from the offer of one property directly into the buy of another. You can keep hold of more cash by doing this, which has allowed numerous real estate investors to gain a little fortune through nonstop deferral.

###

Tuesday 20 October 2015

Should a real estate investor check out the numbers?



While any real estate investor is actually considering of purchasing a certain investment property, there are numbers which are provided to the investor that includes, price, units and cap rate depending on which the investor is going to make a decision. Now the question that arises in this scenario is, whether the person needs to opt for the numbers and make investment on the basis of that, or, whether the person needs to question that act.

Now the easy answer to the above scenario is the investor needs to question the scenario. But one of the more legitimate answers according to Jeff Adams is the investor should ask about the rental property by himself.

The first factor that you need to consider is, do not get excited just because the property has a lot of opportunity along with lots of upside potential. The reason is none of that will directly address the profit that you can earn if you own that rental property and the agent who has provided you with the different information is merely shuffling some of the listing agent’s data and they appear to be ill informed regarding the real estate investing.

So it is definitely better to not just rely on the description portrayed by the agents or the pictures sent over to you. Be careful and check out the numbers.

One of the most important real estate investing tips is to look for the numbers. Real estate investing is only about numbers. A “good” rental property should mean, the property comprises of high occupancy in the present real estate market and similarly a “good opportunity” should mean when there is proper evidence to support it. Either way, make sure that the agent is backing you up with proper numbers for the claims made by him.

Now, one factor is, should you trust the numbers? It is a fact that the majority of brokers might be honest but keep in mind that a listing agent will use the rent and operating expenses supplied by the seller and in rare cases the numbers will be substantiated. Also most listing agents tend to be over zealous and optimize the numbers.

Question a realtor when he/she is trying to sell a real estate property, expect to see much more than just a typical listing. Ask for the before and after cash flow comparisons for the last 6 months so that you can be sure about the taxable loss or gains, profoma of income statement along with revenue projections and some rent scenarios and also an acquisition funds summary.

You need to look about the number in this way, if you are going to invest thousands of dollars so that the realestate agent can have a share or commission, then he least he can do is offer you a complete support to assist you with the numbers and prudent investment decisions. If you can find such an agent, who is willing to stand alongside to help you crunch the number, then half the job is done.

###

Monday 19 October 2015

The factors that can help you in real estate business expansion



The real estate market definitely needs a valuation which is taken up by the analysts for estimating an amount that is necessary for one to pay for owning a particular real estate property. It simply means how much you need to invest before purchasing a property. The method is really popular among the agents and brokers. This process is also known as the comparative market analysis.

The valuation of a property is based on the sales price for similar other properties within the local market. The property analyst makes the selection regarding which sales will be best for using for a certain property and makes the identification of price affecting features that differs within sales and subject property.

After that the dollar value is created of those subsequent differences regarding the adjusted sales comparisons. But the main factor for real estate investing is the valuation of residential and commercial properties are actually dependent on the economics principals.
Now, the reason an individual is interested in real estate business is to generate profit and good amount of cash. And for that, you need to maintain certain factors to take the real estate investment to a complete new level. The first thing for a successful real estate investing is to opt for the bigger fish.

The commercial property investment offers greatest cash flow and also the returns are excellent if you can make intelligent decisions at the right time. The number of units and the size of properties can offer some of the largest returns for the investment that you are making.

Another successful real estate investing tips is to continually educate yourself. You need to remember that, the real estate market fluctuates very less, but still in your problematic times, the experience will be the most valuable assets that you can have. So it is really a great option to keep on learning through different deals and observations of the market.

The next factor, according to Jeff Adams is to have a proper marketing system. For successful implementation of your business, you need to develop marketing skills and put them into action. A very successful real estate investing tips is to make use of the direct mail system. And then when you have started gaining responses from the direct mails, you can get yourself to the networking schemes. Visit the local investment clubs, lenders and bankers. This is a really good way of expanding your business to a huge extent.

The last but not the least factor is having a can do attitude. Well, it is a fact that sometimes you might make mistake and incur a loss in a certain real estate deal, but do not get overwhelmed by the fear of loss. A person who cannot think that a deal cannot be executed because it’s bigger is definitely making a mistake. On the other hand, if you don’t give up and try again for success by combining education, expert assistance, right attitude and marketing, you can rest assured that out are bound to get success.

###