One of the hot names in commercial real estate right now is American Real Estate Partners. There focus is on commercial real estate and their investing strategy can be concisely summed up by their business philosophy: “Identify opportunity, manage risk and create value”.
More specifically, they are a real estate investment trust that operates on the eastern seaboard of the United States and is involved in not only commercial real estate investing, but also in real estate financial instruments.
There are several benefits to placing your money in an REIT instead of attempting to invest in commercial real estate listings completely on your own.
First, if you have ever looked at commercial real estate listings, you know that commercial real estate is very expensive, and because of this, if an investor were to place his money in the market, he would only be able to invest in a single property, or possibly not even be able to do invest at all. But by pooling funds as part of an REIT, investors can enter the market with a smaller amount of money and diversify their investments among several properties in order to mitigate risk.
Further, by having the professionals at an REIT make your investments in commercial real estate listings, you are diminishing your risk of being swindled or being on the wrong side of asymmetric information.
Lastly, investing in commercial real estate listings involves many bothersome transactions and a large amount of maintenance. But by using an REIT in order to invest in commercial real estate listings, an individual can avoid these hassles, and instead receive an annual and consistent flow of cash. Overall, an REIT is judged by its ability to time cash flows and mitigate risks. These are the primary services that American Real Estate Partners and other REITs are charged with providing, and American Real Estate Partners is known for providing these services well.
Their Chief Executive Officer Douglas E Fleit is doing a top notch job and for those looking to invest in commercial real estate, there is not a better pick than American Real Estate Partners.