There are many investors who are concerned about the partial government shutdown and the upcoming debate regarding whether or not Congress will raise the debt ceiling. These investors are trying to decide where to invest their money so they can mitigate any losses that will result from the ongoing debates. One asset class that is often used as a small portion of a portfolio is known as alternative investments, and is separate from traditional stocks and bonds. One sector of alternative investments is real estate, where investors can pool their money into residential homes, raw land, or office buildings like those leased at Hi-Riet.
Real estate can be invested through a couple different ways. You can personally go out and buy a home or raw land with your own money and invest directly in the real estate. If you have sufficient cash to buy the property, you can own it outright. You can also go to a bank or other lender and obtain a mortgage to buy the property and pay it off over time. In addition, there are large investment corporations known as a real estate investment trust (REIT) who have large amounts of cash to invest in these different sectors. As an investor, you have the ability to approach the investment company and provide cash to own shares of the trust. This would be similar to owning shares of stock, but instead of owning a corporation, you own real estate.
In recent news, the Empire State Building in New York City was recently added as a piece of real estate in a REIT. The investment company had an initial public offering (IPO) on a stock exchange, and investors had the opportunity to buy shares. The IPO was intending to raise $1 billion and sold shares for $13. The IPO fell short of its goal, but still raised over $900 million. Now there are many people who can say they own a part of the Empire State Building.
Uncertainty in the national economy can have negative effects on stocks and bonds, and investing in real estate may help offset those losses. You can search online to find different REIT offerings and invest in them if you would like. There are companies like Hi-Riet that own and lease office space that may have a REIT you can invest in, or others that solely invest in raw land, residential homes, or some combination of all three.
Real estate can be invested through a couple different ways. You can personally go out and buy a home or raw land with your own money and invest directly in the real estate. If you have sufficient cash to buy the property, you can own it outright. You can also go to a bank or other lender and obtain a mortgage to buy the property and pay it off over time. In addition, there are large investment corporations known as a real estate investment trust (REIT) who have large amounts of cash to invest in these different sectors. As an investor, you have the ability to approach the investment company and provide cash to own shares of the trust. This would be similar to owning shares of stock, but instead of owning a corporation, you own real estate.
In recent news, the Empire State Building in New York City was recently added as a piece of real estate in a REIT. The investment company had an initial public offering (IPO) on a stock exchange, and investors had the opportunity to buy shares. The IPO was intending to raise $1 billion and sold shares for $13. The IPO fell short of its goal, but still raised over $900 million. Now there are many people who can say they own a part of the Empire State Building.
Uncertainty in the national economy can have negative effects on stocks and bonds, and investing in real estate may help offset those losses. You can search online to find different REIT offerings and invest in them if you would like. There are companies like Hi-Riet that own and lease office space that may have a REIT you can invest in, or others that solely invest in raw land, residential homes, or some combination of all three.