Real estate market in the U.S has grown rapidly over the last few years. You can see this increase if you compare the real estate prices of your nearby houses, shops, and plazas with what they were 3 or 5 years ago. This has shattered everyone and most of the investors nowadays are new investors. A survey has been conducted and has resulted that approximately more than 39% of the investors investing either directly or via Real Estate Investment Trust (REIT) are new investors and have been willing to invest for the first time.
The Real Estate Investment Trust market has grown from $310 billion in the year 2003 to $2.05 trillion by the end of 2015. This is an exponential increase in the overall revenue generated by the Real Estate Investment Trust (REIT) market. By description, The Real Estate Investment Trust (REIT) is a proper trust possesses and, overall, functions income-producing real estate or assets related to real estate.
The Real Estate Investment Trusts pool the investment of numerous depositors as per their need and demands. That is why; there is always a trust of numerous investors on the Real Estate Investment Trusts. The main reason behind this trust is that the Real Estate Investment Trust (REIT) allows every individual investor to receive a portion of the income formed through profitable real estate proprietorship, without having to go out and purchase or fund property. Direct Investment has also been seen increasing due to its own benefits over the Real Estate Investment trusts.
What Are Win-Win Deals?
In real estate, we simply assume that there are two parties and a contract is signed between these two either in the form of sale, purchase, or rent. In case of sale and purchase deal, one party is willing to sale it and other is willing to invest in it. However, as far as the rental deals are concerned, one party is willing to give a portion or a full-fledged house to another party on monthly rental basis. As far as the deals are concerned, a win-win deal is thought to have been happened when both parties agree with their mutual consents and no one is of the view that they are on the losing side. In simple words, a real estate win-win deal is a deal in which two parties shake hands by agreeing to demands of the other party and no one feels that there is something wrong with their side in this deal.
Negotiation—A Big Factor To Make A Win-Win Deal Happen:
As mentioned earlier, a win-win deal is thought to have been happened when both parties agree with their mutual consents and no one is of the view that they are on the losing side. Describing more simply, a real estate win-win deal is a deal in which two parties shake hands by agreeing to demands of the other party and no one feels that there is something wrong with their side in this deal. Therefore, negotiation is a big factor that can decide the agreement of both parties. If any party is not willing to accept any point, it is the factor of negotiation that should be initiated by the other party in order to make it a win-win deal. However, it depends on the party owner that how he or she decides to go ahead. Sometimes, there comes a situation when things do not go the right way. But still there is a slight element of negotiation that can make your deal a win-win deal.
Message for New Investors:
If you are a new investor (either Direct or REIT), you need to understand that deals between two parties can only be completed with success if both of them decides to negotiate on the points that are disagreeable. In this way, you can easily make it a win-win deal without any further effort.