What is a REIT?

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A Real Estate Investment Trust is a company that owns, operates, or finances income producing real estate. REITs allow investors to earn income produced through commercial real estate ventures without having to buy, manage, and most importantly, finance properties.

Characteristics of REITs

  • REITs typically invest in office buildings, shopping malls, apartments, hotels, warehouses, or hospitals.

  • Most REITs are listed on stock exchanges, making them easy to buy and sell like regular stocks, providing liquidity and flexibility.

  • REITs generally don’t pay corporate income taxes, avoiding double taxation that generally occurs with publicly traded stocks.

-Zac