Are Real Estate Investment Trusts (REITs) A Good Investment Right Now? The Pros And Cons

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.

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

A hybrid REIT is a real estate investment trust company that effectively combines equity and mortgage REITs (mREITs).

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 registered with the SEC and are therefore regulated, but they are not traded on public exchanges.

Public non-listed REITs are still required to make regular, periodic regulatory filings. Public non-listed REITs, however, are open to non-accredited investors.

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