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TotalView and REIT Charts

July 17th, 2009 | posted by dgadmin
in

I saw several questions about the REIT charts in the TotalView tool (www.totalviewrealestate.com). I started to simply reply in the comments, but it started getting long enough to justify its own topic. Without further ado...

To answer the questions about REIT charts.

REIT = Real Estate Investment Trust

Think of it as a mutual fund for real estate. If you have only $50 or $50,000,000 and want to invest the real estate market. Not by making actual deals, but banking on the idea the market will go up say 6-10%+ year over year for example. You can buy shares of these REITs just like you could be shares of IBM. Your investment goes in a fund that the investment company uses to go buy properties or otherwise leverage real estate.

As the value of the properties increase or income is derived from sales or lease the shares are worth more. Basically, they invest your money for you on a large scale. These investors may even be ones who buy up your deals you find.

The REIT charts represent two different things. The Index chart is a index of how all REIT's combined are performing. A REIT can be all types of real estate, or very specific, like only: commercial, apartment complexes, residential, etc...

The Index gives you a pulse on how the equity markets feel about real estate in general, all forms. The residential chart shows the most popular residential REIT traded to give you a clue about strictly how residential real estate is being perceived by traders.

Traders, brokers and your average person buying stocks on their PC are not real estate investors, so the REIT can't give you the best picture, but they are people who are betting their money on an outcome, and some of them are pretty smart - so it is worth seeing how other people feel about the real estate market at any given time.

This is just scraping the surface, but it enough for the purpose of the way you will care to look at for the most part.

On 18:59pm, July 17th, 2009 Indiana-Joe said:

dgadmin,

Indiana-Joe's picture

Thanks for the additional information, insight and explanation of the REIT subject. I am sure there were many people that had questions and did not take the time to ask. Thus, your explanation and information will probably benefit many of the members. Believe and Achieve! Smiling - Joe

On 21:31pm, July 17th, 2009 successpig said:

Reits

I can now see why this is useful. If you see an uptick in Reits that means investors may be gaining confidence in the market but that does not mean the market has totally recovered.

On 3:03am, July 18th, 2009 lucio said:

Interesting

lucio's picture

Thanks for that info I never heard of that I seen it but just didn't know what is was for.thanks

On 18:19pm, July 19th, 2009 robasciotti said:

umm

robasciotti's picture

never what that was thank you!

On 23:49pm, July 19th, 2009 scottamerica said:

Thank you for that insight,

Thank you for that insight, makes it very clear to understand.

On 5:31am, July 20th, 2009 SanBern said:

You Know The Saying

"Give a man a fish, he eats for a day, teach a man to fish, he eats for a lifetime." This is the philosophy I envisage from this whole Blitz affair. We are being provided with the tools, it is up to us to use those tools to our advantage. Great Blog as usual Dean. Our thirst for knowledge is overwhelming as we await the upcoming conference call. Thanks and may God continue to bless you for helping others.

Sandra

On 14:02pm, July 21st, 2009 Mike Hutchins said:

Interesting..

Yet another tool in our Arsenal for Success.

Thanks for the great info, as always. Smiling
-Mike Hutchins

On 9:52am, July 22nd, 2009 dgadmin said:

Consider this...

dgadmin's picture

Since a REIT basically works like any stock on the ticker, it is traded quite readily. If traders think the market has hit a bottom, they will dump money into the REITs since it becomes a profitable stock investment based on their prediction.

Now, if REIT has influxes of hundreds of millions all the sudden, the trust has to invest that money in real estate. Banks know this too, so keeping their prices firm, be it residential or commercial, will force the REITs to eventually pay what they want to get paid. A REIT won't sit on all the cash not turning any profit waiting for the perfect deal like we will, and we are small fries also.

The cycles and events driving price action the triggers are exponentially complex, but looking at different angles like this can help explain the reasons why markets are doing what they are doing.

If money gets drawn back out of REITs I would imagine that would soften bank prices to a degree, and softening prices makes the retail public think buying a house is a bad idea, and they further soften.

So much to look at, but a draw down in REITs would actually be good for us to provide more opportunity to stock up on cheap deals if the cycle is affected as I speculate it is to some degree.

On 0:47am, July 23rd, 2009 moriah_homes said:

REITs

I was one of those asking about this topic. Thanks for the info and comments

On 1:01am, July 25th, 2009 Rosefield said:

The tool

Hello everybody,
I ran my home on (the tool)total veiw,And i believe it is running well.I really understand now about...What you do not know,Does not hurt you!
P.S. If you never wanted anything to do with the stock market,Well your property is...All about stock/Good-Luck!
The total veiw is running/Great info!

On 2:07am, July 25th, 2009 Rosefield said:

censor

Hello everybody,
I did an "Total Veiw/REIT Charts",I was surprised by the findings.I basically ran my castle to see where the property stood.In my findings,My property is well worth less...Than considered.
i have been around for a distance! It comes clear everyday, everyminute and second...Life is an Game of chance,I know i am being a home-owner and that is good as well.The market will always be the king of assets.
I think what i really want to say is:Learn too read between the lines./Don't believe everything, when making your OFFER!
P.S.I was given an 102k/I am easy, 130k + C2 possible.
Tool is great info/I will wipe the tears from my eyes!

On 18:48pm, July 26th, 2009 r.e.titan said:

reit

r.e.titan's picture

i understand this but what is very upsetting is that we bailed out these financial institutions (to avoid complete meltdown) and they are hold up the financing and the inventory, while paying themselves some hefty bonuses. my son is a real estate agent, here in San Diego, the inventory is all tied up. now that the banks and other property holders have been bailed out they can wait until the market turns, then they will let go of the toxic stuff. the bad thing about this is if the market was able to do the regular cycle this inventory would have been bought out by people like us and people who were priced out before the crash. this would have meant allot of homes to the financially lower level of buyers who could have been home owners. warren buffett received greats terms on this loans and voting rights on the stock but not the American people, we are losing out we got a lot less interest and no voting rights on these stocks. we can not stop the bonuses. back to the purchases and financing. what a mess. but i am still trying.

On 6:44am, September 15th, 2009 ishikee said:

reit

thanks for the info.i always see the word reit but i never knew that it was associated with stocks.thanks for schooling me.

On 0:54am, September 16th, 2009 SpencersInvesting said:

thanx for info

SpencersInvesting's picture

thanx for info

On 0:11am, October 20th, 2009 DeChelles Inc said:

REIT'S

I'm the new kid on the block. Everytime I read something from this site its packed with info. Thanks very much for that! Now I know more! I just love it!

On 2:27am, November 1st, 2009 shanegore08 said:

Good Luck

shanegore08's picture

Thanks for the info. Im going to check into the REIT chart now. I realy never paid it any attention.