What is REIT (Real Estate Investment Trust) - How to Invest

What is REIT?

(Real Estate Investment Trust)REITs are companies that own or produce fiance-prod
using income according to the property sectors.

How  REITs Trades

Reits Trades on Mojar Stock exchange units for producing a large amount of profit.

Types of REITs 

These are 3 types of REITs.
  1. Equity REITs
  2. Mortgage REITs
  3. Hybrid REITs

Explanation:-

Equity REITs

Their trusts invest and contain properties with their income primarily coming from leasing space.

Mortgages REITs

They provide financing for real estate by purchasing or originating mortgages and mortgage-backed securities

Hybrid REITs

It is a combination of Mortgage and Equity REITs Hybrid offers a mix of both world

Explaining Different REITS

  •    Retail REITs

They have and maintain real estate and rent space in those properties tenants. They mainly focus on large malls, shopping clubs, and grocery stores

Net lease Reits contain freestanding properties and structure their leases so tenants pay for rent and major expenses.

  • Residential REITs

REITs operate multi-family, apartment, and building as well in housing schemes. Investors look for high-pressure areas for investment within a specific market.

  • Health Care REITs
Their trust invests in hospitals and medical centers.15+ Care REITs are listed in the US stock exchange unit. Healthcare REIT property excludes Skilled nursing facilities, buildings, hospitals, and Medical stores 

  • Office REITs

Office REITs Contain and Maintain office real estate and rent those properties to tenants. Those properties can range from offices to parks. Some office REITs focus on some types of markets such as central business districts and suburban areas.

  • Mortgage REITs

Mortgage REITs provide finance for profit-producing real estate by Purchasing and originating Mortgage and Mortgage-backed securities (MBS). It is simply defined as the combination of all REITs.

Invest in REITs

REITs are based on real estate investment. As we know in real estate we make a large profit but sometimes lose our investment. It's full of risk.

The requirement for the company to qualify as a REIT

  • Invest 75% in Real Estate of total assets.
  •  Generates 75% profit from rents from real property.
  • Pay 90%  of its taxable income in the form of shareholders every year.
  • Contain 100 shareholders.
  • Be Maintained by the board of directors.

List of REITS IN the US Stock Market

  • (WELL) Wellpower, Inc.
  • (PSA) Public Storage, Inc.
  • (EQIX) Equinx, Inc.
  • (SPG) Simon Property Group, Inc.
  • (CCI) Crown Castle, Inc.

                Frequently Asked Questions

How REITs Make Profit?

         REITs Make a Profit by making trades on major stock exchange units.

How to Invest in REITs?  

        You buy shares in REITs that are listed on major stock exchanges. You can also buy as a mutual fund or exchange-traded fund.

Best REITs In the US Stock Market.

          (PLD)Pologis, Inc. And (AMT) American Tower Corporation are the best REITs in the US stock market.

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