Real Estate Investment Trust (REIT)
a reit or real estate investment trust enables a company or corporation to use the combined investments of money to purchase real estate property. a reit works like a mutual fund allowing both large and small investors to own a share of real estate. there are three basic types of reits. first, equity reits allow investors to own properties and generate revenues by lending ?. then, there are mortgage reits, which allow investors to own property mortgages, purchase mortgages from lenders and loan money for mortgages. profits from these reits are received from the interest earned on the mortgage loans. lastly, there are hybrid reits, which are investments that combine both equity and mortgage reits. reits offer smaller investors the opportunity to purchase real estate they otherwise would not have the available capital to invest in such as commercial property, shopping malls or warehouses. reits are seen as very liquid assets that can be sold and traded easily since they are sold on the major exchanges and traded like stocks. reits by law must pay out 90% of their profits as dividends to investors to qualify for special irs tax considerations. these payouts ? one of many reasons that ? attractive to investors of all income levels.
- real estate investment trust（reit）・・・不動産投資信託