Are you an investor interested in diversifying your portfolio? Have you always wanted to make money through real estate without the hassle of owning and maintaining property? REITs might be the ideal investment opportunity for you.
Frequently Asked Questions About REITs
- What are REITs and who should invest in them?
REIT stands for Real Estate Investment Trust. They were created by the United States Congress in 1960 and they allow anyone to invest in commercial real estate. They are viable options for investors who are looking to diversify their portfolios but are not necessarily comfortable dealing with the complexity of buying commercial properties or cannot meet the capital requirements of such.
- Why should I invest in real estate investment trusts?
REITs are considered to be a very liquid asset because investors have the ability to enter and exit on a daily basis. Buying shares of property is a practice that has the proven potential for a sustainable rate of return.
- How do I invest in a REIT?
If you are wondering how to invest in a REIT, talk to commercial real estate partners who can help you manage cash flows and the risks involved with investing. They can also help you get started with the initial investment process.
- What types of REITs are there to choose from?
There are two categories: equity or mortgage. Equity REITs primarily own income-producing real estate, such as apartments, warehouses, office buildings, hotels, and shopping centers. On the other hand, mortgage REITs generally lend money directly to real estate owners or extend credit through the acquisition of loans.
- Do countries other than the United States have REIT investment opportunities?
Yes, in fact, over 30 countries currently have REITs. They are generally modeled after U.S. real estate investment practices.
If you have any additional questions about real estate investment trusts, investments, or real estate partners, feel free to post in the comments section below.