Today we will deep-dive into Real Estate Investment Trusts and if REITs are a good investment now. Investing in REITs can be a great way to incorporate portfolio diversification.
Real estate investment trusts or REITs own, operate, or finance income-producing real estate across many property sectors. The real estate investment trust is a way to invest in real estate passively.
Equity REITs are the most prevalent type of REITs. Equity REITs own or operate income-producing real estates like shopping malls, commercial real estate, health care facilities, apartment buildings, warehouses, office buildings, cellphone towers, and hotels.
Mortgage REITs (mREITs) only provide financing for income-producing real estate by borrowing money at low short-term interest rates and purchase mortgages that pay more excellent long-term interest rates.
They own and manage properties collecting rents, and also invest in mortgage securities. Hybrids REITs try to profit from rising and falling interest-rate environments by investing in actual properties and mortgages.
Public non-listed REITs are still required to make regular, periodic regulatory filings. Public non-listed REITs, however, are open to non-accredited investors.