What they are and how to invest in real estate funds
are an attractive Real Estate Investment Fund (FII) option for those who want to invest in real estate without spending a lot of money and have a monthly return with rent without worrying about the administration of the option acquired. In this article, we have gathered basic information that clarifies the most common doubts about this type of investment. Then discover how to invest in real estate funds:
What are real estate funds?
In this type of investment, many foreigners invest in real estate on the stock market. It works like this: a bank or brokerage creates a fund to build a business with multiple payments dividing the total value aims to increase to make the project viable. Investors then acquire the amount of fees that interest them, respecting the minimum and maximum values stipulated by the fund.
When acquiring these costs, they do not own a room or square meter, but they are co-owners of the property. In this way, they distribute monthly benefits of the amount collected with the rent of the company, receiving proportionally the percentage they have invested.
How real estate funds work
Whoever takes into account the fund is the administrator who manages the entire property or papers. This is usually financial management done by qualified professionals interested in effective management.
If a manager does not manage a fund well is unlikely to have credibility in the market to open another real estate fund and is of interest to obtain management fees.
The officials of the FII take care of all consider property, rent, repairs and cotistas do not need to worry. They are required to present the balance sheet, the results demonstration, the cash flow, among others. Everything is very transparent, regulated and controlled by CVM - Securities Commission.
The costs are distributed among all foreigners, which makes the value spent on administering the property much cheaper.
The ideal is to buy real estate at a good price, which generates good rents.
Difference between real estate and real estate investment funds
High level properties
The market value of the property on the front line of commercial buildings, apartments, shopping centers, is very high, which makes it very difficult for you to own a real business to acquire this level.
But investing in a real estate fund with less than R $ 1000, or even $ 100 a month R, you can buy a property of this standard and, even more, diversify those investments.
Types of tenant
Front line properties have frontline tenants, with a much lower delay rate. This means less headaches when receiving payment.
But, of course, not all real estate funds are perfect, for example hospital real estate funds. I do not particularly like that, because if a hospital goes through a financial problem - which is not uncommon - it is very difficult to release a tenant of this type. In addition, it is not an easy rental property because it does not correspond to any institution.
A commercial space or store on a commercial avenue is much more interesting. It is important to filter the best.
Benefits of FII
Diversification of investments
One of the advantages is that it is possible to acquire a stake in large companies such as shopping malls, commercial hangars and luxury buildings. With a low value, for example 100 R $, it is possible to buy a portion of several high-level properties.
installation
You very easily buy and sell property in Brazil, without looking back to meet the companies personally see the history of construction, if it is still on the ground. Without bureaucracy and bureaucratic costs.
convenient
The investment is made via the Internet, via the stock market, buying and selling through real estate brokers, in the comfort of your own home.
convenience
There is an administrator who takes care of everything, at a very low cost, which is distributed among the owners. And you receive the rent directly into your account.
Monthly performance
A well valued property produces a good monthly rent, you will receive this rent forever, that is to say a real residual income.
tranquility
You do not need to worry about repairs, reforms or assemblies, because the management is done by professional management.
Minor expenses
With a large number of contributors to allocate fund administration expenses, it is much less expensive than paying a property to manage a traditional property. You also do not have to worry about the costs of bureaucracy in offices and pay less taxes, including income tax.
High liquidity
The FII guarantees greater ease and flexibility in buying and selling shares. If you need $ 20,000, for example, in an emergency, it's very easy to just sell the fees with the value you need. It's much harder to do in the case of your own property. In addition to bureaucracy, when you need money quickly, you usually end up selling at a price lower than the real value of the property.
Valuation of the quota
Since the price of fees varies according to the valuation of the property, it is possible to earn money with the long-term valuation.
Reinvestment of benefits
If you have a $ 100,000 R building and R $ 700 rents, it will take a lot longer to get a return on your investment if you have a real estate fund share of the same value.
It will take years to recover that $ 100,000 to buy another property. But if you invest that value in the FII years, split in increments of R $ 100 to R $ 1,000, and receive a rent of R $ 750, you can reinvest that amount every month or every two months, the purchase new shares of other properties, placing compound interests to work in your favor.
If you want to reinvest the money to conquer your financial independence, real estate funds are a very interesting option. This is an excellent opportunity to invest in real estate with little money and in a very simple way.
To learn more, I invite you to meet my class, where I teach Investor Success for Real Estate Funds, which gives some tips on what property you should avoid and what are the criteria for choosing the best mutual funds. placement. Click here to access it!
