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Showing posts from November 7, 2015

Saturday Finances—Real Estate Investment Trust (REIT)

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Learning as I go about investments & managing my portfolio


REIT
Real Estate Investment Trust
It's fun to say, isn't it (pronounced "reet)?  
A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges like a stock.  (investopedia)
Because it is a trust that manages different types of real estate ventures (e.g. shopping malls, hospitals, apartment complexes, hotels, warehouses, timber land), it is a much more liquid type of investment than buying the actual properties.  You don't have to wait around and hassle with selling properties.  You just sell out of or buy into a REIT. 
A REIT is like a mutual fund for real estate.  
What's a"mutual fund?"A mutual fund is a professionally managed pool of funds designed to meet specific objectives, like generating dividends or growth.  Dividends are good for investors who want to generate income; growth is good for investors who want to build their investme…