Real Estate Investment Trusts own and manage real estate investment properties across various locations or industries. Investing in the real estate market on your own can be complicated.
Fortunately, a Real Estate Investment Trust (REIT) can allow an individual to invest in real estate properties, just like you would a particular stock.
What Is a Real Estate Investment Trust (REIT)?REITs allow anyone to invest in real estate assets by purchasing individual company stock or through mutual funds or exchange-traded funds (ETF).
Types of REITsEquity REITsEquity REITs are the most prevalent type of REIT. Equity REITs own or operate income-producing real estate like shopping malls, commercial real estate, self-storage, health care facilities, apartment buildings, warehouses, office buildings, cellphone towers, and hotels.
Mortgage REITsMortgage REITs (mREITs) only provide financing for income-producing real estate by borrowing money at low short-term interest rates and purchasing mortgages that pay more excellent long-term interest rates.
Hybrid REITsA hybrid REIT is a real estate investment trust company that effectively combines equity and mortgage REITs (mREITs). They own and manage properties, collect rents, and invest in mortgage securities.