Robert Shumake

arl E Bird, III, spokes person for the REITBuyer.com answers questions at local real estate investors meeting

Detroit, MI - Real Estate Investors are feeling the pain as their properties are worth less than what they owe on them. It is predicted that things are going to get even worse before we begin to see improvements in our economy. Like other stocks and mutual funds, investors are stuck holding onto declining-value investments in hope that things will turn around. Earl E. Bird, III, a real estate professional, recently spoke to a group of real estate investors, offering hope and a solution to their dilemma.

Earl began, "Purchasing a real estate property today is a great investment; however, a lot of you already have properties that are upside down; you owe more than they are worth in today's market. REITs are Real Estate Investment Trusts, essentially, Real Estate Mutual Funds. They are a way to invest in real estate without the pressures of ownership and management obligations."

Earl explained the reasoning behind the creation of REITs, "In the 1960's, the US Congress established REITs to give less established investors the opportunity to invest in large-scale, income producing real estate. Congress determined purchasing equity, as it is done with other industries, would be the best way to give the average investors the chance to purchase large scale commercial real estate. Before Congress became involved, access to these investment opportunities was limited to wealthy individuals and institutions."

One investor asked, "What are REITs and why are they such a great investment with property values declining the way they are today?" Earl said, "A REIT is a corporation that owns investment property, commercial and residential, including hotels, office buildings and apartment complexes, for example. REITs are a good investment because the dividends are based on income produced by the properties; REITs may also finance real estate and many have their shares traded on major stock exchanges."

Earl went on to explain the requirements of a REIT which helped to express the benefits of REIT investing, "To qualify as a REIT, a corporation must comply with the provisions of the Internal Revenue Code. According to the tax code, a REIT must pay annually at least 90 percent of its taxable income in the form of shareholder dividends. They must be managed by a board of directors or trustees and have a minimum of 100 shareholders. A REIT must invest at least 75% of its total assets in real estate and have shares that are fully transferable. During the last half of the tax year, no more than 50 percent of its shares can be held by five or fewer individuals and at least 75 percent of its gross income must be derived from rents, real property or interest on mortgages financing real property. Finally, no more than 20 percent of its assets can consist of stocks in taxable REIT subsidiaries and the REIT must be an entity that is taxable as a corporation."

As the meeting concluded Earl covered additional benefits of investing in REITs as he explained their liquidity, professional management, and oversight and disclosure obligations. The investors were happy with the information Earl provided; some were overwhelmed. Earl recommends that everyone educate themselves to fully understand what they are getting into before investing. "All investments are risky and the return on your investment is based on the degree of risk," said Earl. "http://www.reitbuyer.com/ is an online brokerage specializing In REITs and Real Estate Mutual Funds - The first and only site dedicated to REITs Real Estate Mutual Funds. This is a place for the small investor to own a piece of world class real estate."

The REITBuyer.com provides a wealth of professional resources for members of their online investment community

Detroit, MI - REIT expert, Earl E. Bird, III was recently interviewed by a group of real estate investors who wanted to learn more about the online brokerage, the REITBuyer.com. The website was officially launched in February of 2009; it is now fully operational; beta testing is complete.

One investor said, "I've heard about online trading sites; what are the benefits of joining the REITbuyer.com?" Earl said, "The site is a great resource for all levels of real estate investors, from newbies to savvy. We have created an online ‘Assessment Wizard' to help investors make wise investment choices based on their individual profile. The wizard suggests an account type, individual, joint or custodial and an allocation of real estate investments suitable for their specific needs. In addition, members can contact our licensed financial advisors by phone, fax or email to get personalized answers to questions about money and investing."

Earl described the educational tools including articles about real estate investments, a savings calculator to help investors reach their financial goals, and easy to understand Q & A about REITs and Real Estate Mutual Funds, and an extensive glossary of financial terms, recommended reading, webinars, helpful links and other resources.

Earl pulled up the website to show everyone how easy it is to sign up and all the information that is available on the site. "We promoted the site before it was fully operational because it contained a wealth of information to educate investors. In addition to all the benefits that I've already mentioned, we also provide a monthly newsletter geared for real estate investors and we offer the opportunity to participate in seminars and other local educational events conducted by our advisors and money managers."

http://www.reitbuyer.com/ is an online brokerage specializing In REITs and Real Estate Mutual Funds - The first and only site dedicated to REITs Real Estate Mutual Funds. This is a place for the small investor to own a piece of world class real estate.

REITs are a secure investment with consistent returns; a great way to diversify your stock portfolio

Detroit, MI - You never know what the stock market will do. In the past few decades, we have seen a number of sweeping changes in the market that have left some investors completely broke! Earl E. Bird, III, real estate investor in the REITs market said, "This is where REITs come in. Adding a REIT or two to your portfolio will offer you more diversity and stability."

Earl E. Bird, III recently spoke at a real estate investors' group meeting where he talked about REITs. "REITs are an alternative way of investing in real estate," said Earl. "You do not have to invest thousands of dollars into purchasing, fixing and managing a property yourself. You simply purchase real estate mutual funds, where you are funding a real estate management company who does all the work. You reap the benefits of being paid dividends based on the profits of the REIT."

Earl went on to say, "There is nothing wrong with investing in other stocks, but some people focus too much on the "flavor of the month," putting everything they have into one single stock, hoping to see great profits. This can be a big mistake. If the company should go under, you lose everything. REITs offer a very consistent return; you will not become a multi-millionaire overnight, but if you stay in it for the long-term, you will see a nice growth in your investment."

http://www.reitbuyer.com/ is an online brokerage specializing In REITs and Real Estate Mutual Funds - The first and only site dedicated to REITs Real Estate Mutual Funds. This is a place for the small investor to own a piece of world class real estate.

Mortgage fraud is defined as the intentional misrepresentation of information, by applicants, loan officers or other parties, which is relied on by an underwriter to provide funding for a mortgage loan

Detroit, MI - Many reports on real estate and mortgage fraud have been released in the last few years. Robert Shumake, an experienced real estate developer was a victim of mortgage fraud. When he tried to sell a house that he purchased and fixed up, he found out that someone had "stolen" the property and removed his name form the title with a fraudulent quit claim deed! It took 2-1/2 years and nearly $60,000 in legal fees to resolve the matter.

Robert Shumake is on a mission to inform the public about mortgage fraud and real estate scams and to teach them how to protect themselves from becoming victims of this crime.

During a recent interview, Robert discussed some of the scams that people are using to take advantage of the market today. "Some of the latest mortgage scams include builder-bailout schemes where developers unload excess inventory through financial trickery and foreclosure help scams where distressed homeowners are tricked into signing over the deed to their home. Others include seller-assistance with the use of false appraisals to sell homes and identity theft leading to home equity credit lines being opened and drained."

Robert discussed the increasing interest rates combined with the declining housing market contributing to the high foreclosure rate. Robert said, "As homes depreciate and the demand for housing decreased, distressed homeowners are unable to sell their homes for what is owed on them. During declining markets, mortgage lenders are likely to commit mortgage fraud to earn commissions."

Robert Shumake has written many articles on real estate scams and mortgage fraud; he has been interviewed and he has spoke at real estate seminars to help increase public awareness.

Robert Shumake has the opportunity to give back to the community as this event helps kids go to college

Detroit, MI - Robert Shumake understands the significance and the impact that organized team sports can have on a young person. He attributes some of his many business achievements to the positive experiences he had as a member of Detroit's Edwin Denby High School's track team. As an athlete, Robert saw the big picture and was able to transfer critical life skills from track and field to his real life situations. He learned discipline, dedication, perseverance and teamwork.

The Robert Shumake Foundation is gearing up for the 5^th annual Shumake Scholarship Relays which will be held in Detroit on April 25, 2009. Since its inception, the event has raised over $30,000 for scholarships to help over 5,000 young people attend college. Robert said, "Track and field kept me out of trouble as it taught me the discipline to focus on being the best I could be. Now I'm giving back to the community by helping today's young people achieve their dreams."

The Robert S. Shumake Scholarship Relays is one of the top meets in the nation, highlighting both athletic ability and academic achievement. In addition to teams demonstrating superior athletic ability during the events, prizes are awarded to the athlete on each team with the highest grade point average.

Robert Shumake is the author of a book entitled, For Entrepreneurs who have Considered Suicide when Business got Tough. Proceeds from the sale of his book go to support the scholarship program. Find out more about the Shumake Relays event at http://www.shumakerelays.com