REITs allow every investment-minded person to make money off valuable real estate, giving them access to dividend-based income and total returns (that may otherwise be out of reach) without buying, managing, or paying for a property.
Anyone can buy listed shares of the REIT on the stock market by purchasing through a broker. For non-traded (REIT), you'll need to buy through a broker authorized to sell the REIT's shares.
Equity REITs acquire, manage, and hold commercial and rental assets. Most equity REITs deal in specific asset classes, like data centers, self-storage, shopping centers, or healthcare facilities.
These REITs give money to real estate owners and developers in the form of loans, and the interest on those loans is how they make money. They help people get the cash they need to buy real estate assets.
REITs open to the public but not traded on public exchanges are registered with the Securities and Exchange Commission (SEC). They sometimes focus on certain types of assets
Like any security, the value of REITs might rise or fall according to market forces depending on various circumstances, including the state of the real estate market and the REIT's financial situation.
The success of a real estate investment trust (REIT) might be hindered by incompetence on the part of the management firm hired to oversee it. Real estate investment trusts (REITs) frequently employ leverage or borrowing money to increase the amount of real estate in their portfolios.