Sunday, May 17, 2009

Real Estate Investment Trusts – Know When To Sell

When it comes to any type of investing there are generally three things you can do – buy, sell and hold.

While this seems like a common sense trio of options, you may be surprised at the number of people who have a tough time deciding which one to do and when to do it. The most common problem comes when deciding whether or not to sell.

Many people who have made an investment want to stick by it to the end. They hope that the end will be a profit for them, but often if things seem to be going the other way they also keep holding on hoping things will turn around and that the investment, and their investing skills will pay off in the end.

Perhaps it is a fear of failure or at least a few of admitting failure that leads to this problem. Maybe somewhere in their head they really do think that it will turn around and pick back up if they just wait out this tough time. Or maybe they are just not able to see the writing on the wall and ignore what is happening to their hard earned money that has been invested. No matter the reason, there are many people who just don’t know when to stop the bleeding from an investment.

Instead of keeping items in your investment portfolio when they are failing or not working for you, you need to regularly look at your investments and ask yourself some questions.

Is it making money?

The first and most important question is whether or not your investment is making you any money. After all, this is what investing is all about, right? If you had a stack of money at home and someone kept coming in an taking a handful of it here and there, would you lat that continue? That is what is happening to your investments if they are losing, and you need to do something to stop it. If your investments are losing you money each year, it's time to cut your losses, make a sale, and move on.

If you do this you can take the money from the sale and invest is somewhere else. For real estate investors, the wise way to do this is to sign on with a website like is the first and only online brokerage that specializes in REITs and real estate mutual funds. This means you will find plenty of news and research to discover where would be better to put your money and also be able to make the purchases in the same place.

Is this moving me towards my goal?

You should have an investment goal. This could be to put aside a particular amount of money towards your retirement or to save enough to send your kids to college. No matter what your investing goal, you should regularly look at your investments and ask yourself if those investments are moving you towards that goal. If they are not you really need to take a serious look at whether or not it is time for this investment to go and give you a chance to purchase something that will move you in the right direction.

This article was written by Earl E. Bird, III, spokes person for the, a website designed to educate investors on REIT buying and investing in Real Estate Mutual Funds. Whether you are a savvy investment guru or a new investor looking for guidance, has everything you need to be successful. Read more about REITs Investing at