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

There are various options to invest in real estate with little or no money as an individual investor.

What Is A Real Estate Investment Trust (REIT)?

Real estate investment trusts or REITs own, operate, or finance income-producing real estate across many property sectors.

Types of REITs Equity REITs are the most prevalent type of REITs. Equity REITs own or operate income-producing real estates

Mortgage REITs 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.

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

Public Non-listed REITs Public non-listed REITs are registered with the SEC and are therefore regulated, but they are not traded on public exchanges. 

Private REITs Private REITs are exempt from SEC registration and whose shares do not trade on national stock exchanges. 

Advantages Of Investing In REITs

No Corporate Tax Based on IRS laws, a REIT needs to invest at least 75% of its assets in real estate and pay 90% of its taxable income as dividends.

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