Unit Investment Trusts Vs. Mutual Funds

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Both UITs and shared money are portfolios of securities. They may contain bonds or stock or a combination of both. Where they differ is in active management of the portfolio. The stock portfolio in a UIT remains the same as time passes unless there is a merger or chance of default in one of the securities.

If you get a UIT, you will usually know what you own. A mutual fund can be an actively traded portfolio that may change completely during the time you own it. It is similar to presenting a professional portfolio manager actively trading your investment portfolio. Active management is not necessarily better. UITs generally contain relatively safe investments such as bonds, preferred stock, or blue chip stock and do not need much active management. Mutual funds may contain a mix of investment risks that require continuous monitoring.

You might be able to negotiate a lower price than detailed on the bank’s website. Just like a bank or investment company REO are sheriff’s sale properties. These are usually handled by the state treasurer’s office or the sheriff, and are properties with some type of judgment against them, usually the foreclosure notice before it would go to the bank or investment company REO.

While you can get some good money saving deals here, the defaulted owner may still go on the property and may make taking possession difficult. Be sure you know the legal process for eviction and be prepared for tidy up and remodeling when you finally take possession. Loopnet is an online platform for commercial real multi-family and estate property that are worth a look.

Most of the entries will be for large commercial space but there are also small, multi-family listings as well. Your very best deals, however the most work, will come from properties not listed for sale formerly. Contacting the owners of abandoned or run-down properties might uncover a deal without the hassle of competition from other investors.

Once you have the address of a property, find your region assessor’s page on the internet for possession information. The assessor’s web page will have other useful information like prior sales and house characteristics. Want to get without all the headaches of real estate? Even the worst property is actually a great deal for the right price. The nagging problem is, you should know how much it’s worth to learn if the purchase price is right. There are a few ways to value property but the two hottest are comparable sales and the capitalization rate methods.

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The comparable sales approach ideals a house against those of similar properties that have sold recently. Write down characteristics of the investment property including age group, square feet of livable space, number of baths, and bed rooms, community, as well as features like a garage area and central air. You then need a summary of all the homes that have sold within the last year in the same community and with the same features.

If your state assessor is on the ball, this could be an easy process pretty. My home county of Polk in Iowa has an excellent assessor’s page with a sales search. They are actual home sales so provide a true market value. To get a good idea of the average value for your target property, you will want at least ten sales with which to compare.

To get a huge enough list of comparables, you may want to arrange a variety on your search. Of searching for the precise age or square footage Instead, visit a range of 15 years around the property age and a few hundred feet round the size. Try to maintain your search to properties as similar as it can be to the one you’re aiming to value. Once you’ve got a summary of similar homes sold within the last year, divide the value by the size (square footage) of the home for a price-per-sqft value, and discover the average of all the properties. Arrange the list by priciest, by price per square foot, to most affordable.

Check out any high or very low values because they might be throwing off the average. Make certain sales are regular “arms-length” transactions and not on an agreement basis. Properties with extremely low values may have needed comprehensive remodeling. The table below can be an example of a comparable sales valuation.