Congratulations ‒ You Have Finished Chapter 17 ‒ Real Estate and Real Estate Investment Trust (REITs)
You have reached the end of chapter 17, Real Estate and Real Estate Investment Trust (REITs). In this chapter and the chapter 17 Canvas module, class website, and Introduction to Investments Discussion Forum, you have:
- Explored real estate and Real Estate Investment Trusts (REITs) as investment vehicles
- Examined the use of financial leverage to purchase direct real estate investments
You should now be able to:
- Explain the use of direct real estate as an investment and the potential real estate investor’s much easier choice, the Real Estate Investment Trust (REIT)
- Calculate the return on a direct real estate investment with and without using financial leverage and demonstrate the significant potential pitfalls of using financial leverage
For those who are serious about learning about real estate investing, we strongly recommend working in the industry first. With the lack of diversification and the substantial amount of money needed just to buy one property, learning on the go as you plunge into the world of real estate investments can be a very painful and unpleasant experience. In our next module, we will discuss brokerage firms and the types of brokerage accounts they offer. We will also spend a bit of time thwacking ugly annuities, those insurance products that entice the uneducated with the promise of a lifetime income. Often too late, buyers of annuities find that the lifetime income they receive is only a small fraction of what they could have received if they had simply educated themselves about the various investment choices or consulted an ethical and competent financial advisor.