Real Estate Investment Trust: Allowing you to join the party

Real Estate Investment Trusts (REITs) are a way to invest in real estate as a full-fledged business. They are traded on all major exchanges and require 75% of the portfolio's income to come from rents or mortgage interest. There are numerous REITs operating in the market, and many of them are doing well. Investing in REITs is similar to investing in real estate without actually purchasing a property, and is much safer.

Real estate is a big business, and everyone wants to invest in it. There are numerous stories about people who made a quick buck by investing in real estate. There are stories of people who made $50000 in a fortnight by making the right real estate investment. Every now and then, newspapers publish statistics about the increase in real estate prices. There appears to be a mad rush to invest in real estate (and this gets even bigger when the mortgage interest rates are falling). However, not everyone has the time, money, or expertise to invest in real estate profitably. So, what should one do? Is there another way?

Yes, another way to invest in real estate is through a Real Estate Investment Trust. A Real Estate Investment Trust (REIT) is a company that invests in real estate as a full-fledged business. You can join the real estate investment party and profit by investing in a Real Estate Investment Trust (of course, the assumption here is that the Real Estate Investment Trust is good and professionally managed).

Investing in Real Estate Investment Trusts is also simple. Simply purchase Real Estate Investment Trust shares, which are traded on all major exchanges. Certain laws govern Real Estate Investment Trusts that assist them in avoiding corporate taxation, for example, it is required that a Real Estate Investment Trust's portfolio contain 75 percent real estate investment. 

Furthermore, 75% of the Real Estate Investment Trust's income must come from rents or mortgage interest. Real Estate Investment Trusts are classified into several types. Some Real Estate Investment Trusts own properties and rely on rental income from those properties. Others specialize in providing only mortgage loans or in mortgage-backed securities. Then there are Real Estate Investment Trusts, which invest in both rental properties and mortgages.

There are numerous Real Estate Investment Trusts operating in the market, and many of these Real Estate Investment Trusts are doing well. Investing in Real Estate Investment Trusts is similar to investing in real estate without actually purchasing a property. This is one simple method of investing in real estate (and much safer too). You should definitely consider this option for your real estate investments.