MIAMI, FL, September 17, 2013 /24-7PressRelease/
-- As the CEO of a real estate investment corporation, Tomas Cabrerizo
knows just how expensive real estate can be. Even the mismanaged and undervalued real estate properties that his company specializes in acquiring can prove costly to the average individual investor. As such, many people invest in no more real estate than that in which they themselves live. For these people, their own homes are likely to be the biggest investments that they ever make in anything.
Real estate investment can be a powerful financial tool, however, if one can afford to get into it. But with barriers such as high costs and the problems of proper upkeep, this is often easier said than done. Fortunately, a recent article
from Yahoo! Finance explains how interested prospective investors can enjoy the perks of investing in real estate without actually buying properties that they cannot afford.
The secret, says the article, is real estate investment trusts, or REITs. These are investment businesses that buy real estate properties and oversee all of the maintenance, management, and rent collection duties themselves. Profits are then passed on to shareholders according to the stake that they hold in the trust.
"Basically, they're mutual funds for real estate instead of stocks and bonds," explains real estate investor Tomas Cabrerizo. "This lets people of any income bracket have the opportunity to invest in lucrative real estate markets and enjoy the benefits thereof, not just the rich who can afford to buy up properties."
Real estate investment funds, says the article, tend to specialize in one particular area of the commercial real estate market. These REIT offerings are as diverse as real estate itself, including such options as hotels, office spaces, strip malls, residential apartments, industrial parks, storage facilities, individual family homes, and even prisons.
According to the article's statistics from REIT.com, the New York Stock Exchange today trades over 160 real estate investment trusts with a combined estimated worth of $650 billion. These companies themselves are estimated to control more than one trillion dollars' worth of commercial real estate.
As is expected from these figures, the market for REITs is heating up. The article reports that real estate as an asset class has gained in value by almost 200 percent since 2009, making it the single best performing investment asset available today. This, of course, does not come without risks, as the price of a real estate investment trust can fluctuate up or down just like any other investment. However, for those who know the risks and are willing to do some research on what they are getting into, says Tomas Cabrerizo, real estate investment trusts can bring big profits to investors with only a small amount of work.
Tomas Cabrerizo is both the CEO and founder of the Miami-based, privately held real estate corporation CFH Group, which specializes in the acquisition of physically distressed and under-valued commercial properties and apartment communities in superior locations. These real estate properties lack proper management and maintenance, allowing CFH Group to acquire them at competitive prices. Tomas Cabrerizo has been responsible for the acquisition and operation of more than two million square feet of commercial property and over 18,000 residential units throughout the Southeastern United States since 1995. Outside of his work with CFH Group, Cabrerizo also participates in many charitable organizations such as the Lotus House Women's Shelter. In his free time, he enjoys spending time with his family and traveling.