{"id":595,"date":"2014-08-15T00:06:35","date_gmt":"2014-08-15T07:06:35","guid":{"rendered":"https:\/\/shellyrobersonrealtor.com\/?p=595"},"modified":"2014-08-29T11:06:37","modified_gmt":"2014-08-29T18:06:37","slug":"what-are-real-estate-investment-trusts-all-about-and-why-they-might-be-for-you","status":"publish","type":"post","link":"https:\/\/shellyrobersonrealtor.com\/what-are-real-estate-investment-trusts-all-about-and-why-they-might-be-for-you\/","title":{"rendered":"What Are Real Estate Investment Trusts All About – And Why They Might Be For You"},"content":{"rendered":"

Investing In A REIT Is Participating In The Commercial Real Estate Investment World Without Actually Buying<\/h2>\n

Real Estate Investment Trusts or \u201cREITs\u201d are companies or corporations or other entities that owns, and most commonly operates a portfolio or income-producing real estate or real estate-related assets.\u00a0 REITs are designed for individual investors to earn portions or shares or fractions of the income produced through commercial real estate ownership.\u00a0 The beauty of which is the investor is not required to actually go out and purchase the commercial real estate themselves as others have already done that. REITs come in all categories and may include office buildings, shopping malls, resorts, apartments, self-storage facilities, hotels, warehouses, and mortgages or bundled mortgage loans.<\/p>\n

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\"REIT<\/a><\/p>\n

REITs typically specialize in a single type of asset class.\u00a0 For example, apartment communities may be the focus of one REIT.\u00a0 There are REITs of all dimensions including retail, office, residential, healthcare and industrial as examples.<\/p>\n

REITs are required to primarily hold and operate the properties that they develop.\u00a0 This distinguishes REITs from other real estate companies.\u00a0 Most real estate investors and developers are always looking at reselling the properties after they have been developed.<\/p>\n

For the IRS to qualify a company as a REIT, a company must have the majority of its assets and income in real estate investments and must distribute a minimum of 90 percent of its taxable income to shareholders or members annually in the form of dividends.<\/p>\n

\"REIT<\/a><\/p>\n

A REIT shall have these qualifications as well:<\/p>\n