Real Estate Investment Trusts |
Real Estate Investment Trusts, or
REITs, are a dynamic way to get involved in real estate. Most investors are comfortable with Real Estate Investment Trusts because of the flexibility, endurance, and liquidity that this type of real estate ownership can afford; as well as being a great starting point for smaller real estate investors. Any number of Real Estate property types may be owned and managed through a Real Estate Investment Trust including residential, developmental, and commercial properties.
Rob Valentine has this to say about REITs in his
Real Estate Investment Trust blog entry:
"REITs come in three major forms. The most common and widely purchased are shares of equity REITs, which invest in commercially managed property that produce income. This is generally the type of REIT that is referred to when discussing them as an investment tool.
Less common versions of REITS include mortgage REITs, which make loans to owners of real estate or invest in current outstanding mortgages. According to Investopedia.com, these REITs account for less than 10% of REITs available today. The final version is a hybrid of the equity REIT and the mortgage REIT and also accounts for a small percentage of REITs. These hybrids combine the mortgage investment of one with the property management of the other."
