Real Estate Investment Trust

Definition

REIT. A corporation or trust that uses the pooled capital of many investors to purchase and manage income property (equity REIT) and/or mortgage loans (mortgage REIT). REITs are traded on major exchanges just like stocks. They are also granted special tax considerations. REITs offer several benefits over actually owning properties. First, they are highly liquid, unlike traditional real estate. Second, REITs enable sharing in non-residential properties as well, such as hotels, malls, and other commercial or industrial properties. Third, there's no minimum investment with REITs. REITs do not necessarily increase and decrease in value along with the broader market. However, they pay yields in the form of dividends no matter how the shares perform. REITs can be valued based upon fundamental measures, similar to the valuation of stocks, but different numbers tend to be important for REITs than for stocks.

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We did not want to bother with the real estate investment trust because it was too complicated for all of us.

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While they did not have all their securities in the Real estate investment trust, they did public trade a particular set of securities.

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People who want the benefits of real estate investing but do not want, or cannot fund, the long-term sole ownership of properties, can invest in a Real Estate Investment Trust, which provides shares in a pooled real estate investment.

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series 24 1120-REIT Form