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Don McClain- What are the Advantages and Disadvantages of REITs-converted

A real estate investment trust can be defined as a company that operates real estate to generate income and corporations that manage the portfolios of high-value real estate properties and mortgages. The collected rent is distributed among shareholders as income and Don McClain guides you to get potentially higher total returns at lower overall risk with his experience.

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Don McClain- What are the Advantages and Disadvantages of REITs-converted

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  1. Don McClain- What are the Advantages and Disadvantages of REITs? A real estate investment trust can be defined as a company that operates real estate to generate income and corporations that manage the portfolios of high-value real estate properties and mortgages. The collected rent is distributed among shareholders as income and Don McClain guides you to get potentially higher total returns at lower overall risk with his experience. It’s good to take a risk by investing in REITs because there are always pros and cons of everything. Advantages of REITs •Steady income: Investing in REITs provide steady income and capital appreciation which also allows investing over the long term. •Option to diversify: REITS are traded frequently on the stock exchanges, which provides investors with an opportunity to diversify their real estate. •Transparency in dealing: It gives investors a way to avail information on aspects like taxation, ownership, and zoning, by making the entire process transparent. •REITs trade on public stock exchanges which adds to the liquidity aspect.

  2. •Accrues risk-adjusted returns: Investing in REITs offers a risk-adjusted return and helps to generate steady cash flow. It enables one to have a steady source of income to rely on even when the rate of inflation is high. Disadvantages of REITs •No tax benefits: The income earned from REIT companies are subjected to taxation which means there are no tax benefits. •Market-linked risks: The major risk related to REITs is that it is susceptible to market-linked ups and downs. Due to that investors with a weak risk should weigh on the return generating capacity of this investment. •Low growth prospect: The capital appreciation is quite low in the case of REITs and this is mainly because they return as much as 90% of their earnings to the investors. You can reduce the risks of an unplanned investment by taking assistance from an experienced real estate expert like Don McClain Austin Texas to find out which asset values will tend to rise with time.

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