[ad_1]
Want to invest in real estate but don’t have the money to buy a property or have no desire to be a landlord? There is a way and it’s called REIT investments.
Investing in a REIT, or a real estate investment trust is a way to own parts of a property without the traditional tasks of maintenance, taking rents or finding tenants.
A REIT involves buying shares of a fund and receiving part of the profits as passive income.
Many REITs are traded on major stock exchanges and can benefit investors in many ways.
“(Investing in REITs) takes away the headache and heartache of direct commercial real estate ownership,” said Abby McCarthy, senior vice president of investment affairs for the National Association of Real Estate Investment Trusts — called Nareit — based in Washington, DC
REIT is an acronym for real estate investment trust, and you pronounce it as a word that rhymes with street or sweet.
What is a REIT?
REIT — real estate investment trust — is a company that owns, operates or finances real estate in a variety of sectors that produce income. REITs are not necessarily real estate companies. Investors buy shares in commercial real estate portfolios through REITs.
“As the economy grows and changes, so do our needs for commercial real estate. The REIT industry is at the forefront of providing those types of real estate that help the economy,” McCarthy said.
By investing, you give REIT companies money to buy more properties and in return, you get a portion of the rental income profits.
How Do REITs Work?
REITs pool the capital of all their investors and since they do not pay corporate taxes, they can usually pay for the real estate more cheaply than non-REITs. This is a good alternative to getting a share of property ownership when you don’t have ample cash flow to invest on your own.
Shareholders buy shares in the REIT, much like buying shares of stocks. Then investors receive the profits in the form…
[ad_2]
Source link
