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FREE ESTIMATES CALL 702-445-1561 Text Box: REIT’s vs. Landlord According to Forbes Text Box: As stated in Forbes article Why REITs Make Sense Stephane Fitch, 07.15.09, 06:00 PM EDT Forbes Magazine dated August 03, 2009 Below are a few of the considerations and a brief run down of what was discussed in Stephane Fitch, 07.15.09, 06:00 PM EDT, .Forbes Magazine dated August 03, 2009 Timing: Those who are willing to stand out the market have a good chance they will get a ROI. Scale: REITs usually own lots of properties offering a wide variety to their renters. Smarts: You may be a knowledgeable in real estate investment game; however you may not be Donald Trump. Cost: Closing costs and commissions are taken up by REITs. However costs of maintenance and overhead go down for landlords who handle the properties. Debt: Average debts for REIT’s run at around 43%, if your going to be a private property investor try and keep debt under 55% of the value of the properties, according to Green Street Advisors. They also reported a whopping average of 80% of debt for privates. OUCH! Investor clout: Stephane Fitch of Forbes magazine says, Since REITs retain so little of their earnings, they are constantly scrounging for new capital and must treat shareholders, analysts and lenders well. A REIT manager caught self-dealing, making questionable loans to family or wasting capital on ego-building projects is likely to soon run out of capital--and find his REIT has become takeover bait for better-managed, and capitalized, rivals. Performance: REITs generated average annual total returns of 9% over the same period vs a wide average for privates. Text Box: Which path to choose when investing your money in real estate?

REITS

Landlord

Does not deal with tenants.

Handling the midnight broken pipe call

Don’t have to be a Donald Trump to make money.

Financial risk however, all the reward.

Purchase larger properties at better prices.

Have fewer number of properties to be concerned about.

Average debt is 55% of total value.

Private investors and partnerships average 80%.