Real Estate Investment Trusts, or REITs, are corporations or trusts that use pooled capital of many investors to invest in and manage a portfolio of real estate properties and mortgages. They are traded publicly, just like stocks, and offer the benefits of real estate ownership without directly owning real estate.
To qualify as a REIT, a company must distribute at least 90% of its taxable income to its shareholders each year. (Many pay out 100% of their taxable income.) As REITs ...Continue Reading →