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Other Added - Real Estate Investment Trust –Two Dirty Little Secrets
Various magazines and statistical surveys boast about their surveying capabilities and on the same track come out with various figures pertaining to the insolvent and bankrupt businesses. The graphs show spectacular steepness and seem to be on a constant rise; however, none of the figures can actually trap the exact scenario. Various smaller firms that close down within months of their opening up are not even
Another thing that most investors are unaware of is the basis of valuation stated in most prospectus documents for REITs. The prospectus is this large document that states out the basis of the investment and reas
Believe it or not, even thieves are already high-tech these days. Browsing the net and reading through online forums, I came across a startling story about how thieves have found their way to infiltrate the world wide web. I read about a lady who was planning to put up a web page of her own. As the normal process dictates, she first thought of a domain name for her website. She chose her own name and had it c
This article after a short explanation about REITs, reveals two dirty little secrets that Property Developers play on unsuspecting REIT investors.
Asset Securitization as it is known in the legal industry in its Non-Enron form is legitimate due to the lower cost of raising funds. Property Developers take the chance to put their best properties into the REITs at the start as it would be cheaper for them to raise funds when compared to getting loans from the Bank which would increase their debt and reduce the credit rating for the company. These property developers having effectively sold their properties away, then manage the same properties through their management companies and charge fees. They then take the money to develop and purchase other properties and their capital gets bigger and bigger.
What most REIT investors are not aware of is that, some unscrupulous Property Developers start sneaking in their underperforming assets into the REITs so as to get rid of property duds and the investors in the REITs end up getting poorer returns on their investments. This can diminish your returns substantially.
For example, in Singapore which has one of the most thriving REIT markets in Asia, there was talk that some of the worst properties almost being sold into one of the REITs, before someone intervened to stop this trend. Investors should therefore take more than a perfunctory glance at the Annual Reports and Market Announcements concerning the REITs that they are invested in.
Another thing that most investors are unaware of is the basis of valuation stated in most prospectus documents for REITs. The prospectus is this large document that states out the basis of the investment and reaso
I once gave a presentation to a group of sales professionals about how belief patterns can take us "off our game." Afterwards, one of the audience members asked what he could do to notice when he is "not on his game." He said he could see where beliefs were likely a part of this, but expressed frustration that he didn't always notice right away when something was off and now wanted to shorten his time to awar
Asset Securitization as it is known in the legal industry in its Non-Enron form is legitimate due to the lower cost of raising funds. Property Developers take the chance to put their best properties into the REITs at the start as it would be cheaper for them to raise funds when compared to getting loans from the Bank which would increase their debt and reduce the credit rating for the company. These property developers having effectively sold their properties away, then manage the same properties through their management companies and charge fees. They then take the money to develop and purchase other properties and their capital gets bigger and bigger.
What most REIT investors are not aware of is that, some unscrupulous Property Developers start sneaking in their underperforming assets into the REITs so as to get rid of property duds and the investors in the REITs end up getting poorer returns on their investments. This can diminish your returns substantially.
For example, in Singapore which has one of the most thriving REIT markets in Asia, there was talk that some of the worst properties almost being sold into one of the REITs, before someone intervened to stop this trend. Investors should therefore take more than a perfunctory glance at the Annual Reports and Market Announcements concerning the REITs that they are invested in.
Another thing that most investors are unaware of is the basis of valuation stated in most prospectus documents for REITs. The prospectus is this large document that states out the basis of the investment and reas
Finding limo services in Denver is not hard to do. The hunt for Denver limousine service is something needs time to consider and should be taken seriously. There are masses of limousine rentals in Denver and each Denver limousine service out there will vary with different rates and prices. Limos services in Denver are not as confusing as it seems, but it is important to choose the right one among the many.ting loans from the Bank which would increase their debt and reduce the credit rating for the company. These property developers having effectively sold their properties away, then manage the same properties through their management companies and charge fees. They then take the money to develop and purchase other properties and their capital gets bigger and bigger.
What most REIT investors are not aware of is that, some unscrupulous Property Developers start sneaking in their underperforming assets into the REITs so as to get rid of property duds and the investors in the REITs end up getting poorer returns on their investments. This can diminish your returns substantially.
For example, in Singapore which has one of the most thriving REIT markets in Asia, there was talk that some of the worst properties almost being sold into one of the REITs, before someone intervened to stop this trend. Investors should therefore take more than a perfunctory glance at the Annual Reports and Market Announcements concerning the REITs that they are invested in.
Another thing that most investors are unaware of is the basis of valuation stated in most prospectus documents for REITs. The prospectus is this large document that states out the basis of the investment and reas
Do you want to be a sales champion? There are a few small secrets that will help you achieve these goals.Commit to your goals. Write down your sales goals for this week, this month, this quarter and this year. I urge you to use specific numbers that challenge you, but are attainable. Post these goals in your office, commit yourself to meeting or exceeding those numbers. Commitment is the foundation tha
For example, in Singapore which has one of the most thriving REIT markets in Asia, there was talk that some of the worst properties almost being sold into one of the REITs, before someone intervened to stop this trend. Investors should therefore take more than a perfunctory glance at the Annual Reports and Market Announcements concerning the REITs that they are invested in.
Another thing that most investors are unaware of is the basis of valuation stated in most prospectus documents for REITs. The prospectus is this large document that states out the basis of the investment and reas
Human resource in various companies decreased due to high work order and the projects being outsourced. Staff’s salary has been increased in Software Development Industry due to shortage of staff that is taken in the concentration. As the quality of work is improved human resource is to be made more and more capable to this competitive era of outsourcing.The outsourcing business develops this provided
Another thing that most investors are unaware of is the basis of valuation stated in most prospectus documents for REITs. The prospectus is this large document that states out the basis of the investment and reasons why you should invest in it and the risk factors that any reasonable investor should note when purchasing units in the REIT.
For example, there was this REIT Company that wanted to list some properties and when one takes a closer look at the basis that the Financial Analysts calculate the potential rental income, its all guesswork. It took the historical rental income and calculated the potential yield for the investor. That’s why investors should remember the adage of past performance is no indicator of future returns and scrutinize the basis of valuation of any investment that they make be it shares, bonds or REITs.
In conclusion, is your money in safe hands? Are you investing in a REIT today that has ancient property rental return valuations or are you buying into a REIT that has a few good properties in its stable with the rest being duds? Take active control of your money today and you will start seeing more visible returns on your investment.
Copyright © 2006 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
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