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For Estate Planning, Estate Administration And Disputes

Considering trusts for real estate investments

On Behalf of | Jun 25, 2019 | Real Estate Law |

Finding the right investment can take time. Many individuals may feel that it is right to invest in New York real estate, but they may not have the ability to get right into handling the transactions themselves. They may live out of the country or have little experience acting as a landlord. Fortunately, there are various options for real estate investments.

For a more hands-off approach, investing in real estate investment trusts could be a viable option to consider. There are two types of REITs, and the one that most suits a person’s investment interests can depend on the goals they want their investments to achieve. Though both property REITs and mortgage REITs provide at least 90% of their revenue to the investors, each differs in the percentage they yield. Typically, property REITs have a lower percentage yield than mortgage REITs.

This lower percentage mainly stems from the fact that property investments accrue more expenses than mortgage investments. Properties have costs associated with buying and selling as well as leasing them to landlords. Of course, both types of REITs can experience declines when the economy negatively affects the real estate market.

Real estate investments can be tricky to navigate, especially for those who do not have much experience in this type of investing. It can also be particularly difficult for individuals who live outside the United States. Fortunately, foreign and domestic investors can gain assistance throughout investment transactions from experienced legal professionals in New York. These parties can provide useful information and support when it comes to addressing investment ventures.