Posts Tagged ‘Cash Dividends’

“People get caught up in wonderful, eye-catching pitches, but they don’t do enough to close the deal. It’s no good if you don’t make the sale. Even if your foot is in the door or you bring someone into a conference room, you don’t win the deal unless you actually get them to sign on the dotted line. ” -Donald Trump

Real estate investing syndicates serve basically one purpose and that is to act like a tax shelter. Real estate investing syndicates are also known as real estate investment trusts or REITs. This type of organization is fairly common in the United States. This is because REITs are not subjected to the normal taxation of other types of businesses and corporations.

Real estate investing syndicates pay almost no federal income tax however they must follow several strict guidelines when dealing with their profits. They are required to give out 90% of their profits to stock holders in the form of cash dividends.

The first real estate investing syndicate was created in the early 1960s. It was used to make giant investments on large pieces of real estate on behave a collective pool of small investors. This was an instant success because it allow individual investors the same powers that larger investors hand. It offers them the ability to have ownership of large equity options of giant commercial property. REIT must have at least a hundred investors.

In addition none of the investors can own 50% or more of the total equity in the investment. In addition, all of their income must come from managing, selling, and buying real estate. This is to make sure that the investors are no using the real estate investing syndicate as a tax shelter for all non real estate investments.

REIT investments are considered passive investments because once set into motion, the share holder has to do very little else. Each month the investor receives an income from the REIT in the form of a cash dividend. Just like any other investments, REITS carry considerable risk and should not be entered into unless you have fully researched the organization and understand your rights under the law.

If you make the right investment choices, you can quit work, and live off of your investments. Financial freedom is with in your grasp but you must take action now. The real estate market is increasing and it is a great time to get involved in a real estate investing syndicate. Investments are no longer just for the rich.

The casual investors can take a small bit of capital and over a years time create wealth and income, that was unimaginable just months before. You have the ability to do whatever you want and be truly successful. Take control of your future, build long term wealth, and live the life your deserve – consider real estate investing today!

Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.com

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Author: Mika Hamilton
Article Source: EzineArticles.com
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