What is a Real Estate Investment Trust (REIT)?
Many investors wish to invest in real estate, but may not have the capital to own their own properties. Real Estate Investment Trusts or REITs make an investment in real estate a possibility for these investors. Investors can purchase a percentage of the REIT. The capital invested into the REIT will then be used to build and maintain the real estate. Dividends will come from rent or mortgage payments on the property.
Investment Planning and Real Estate Investment Trusts
There are many different types of REITs to choose from. Each can offer investors different benefits. Understanding the different types of REITs and how they work can help you get the best return on your investment. They are managed in the same way you would manage stocks or bonds and can be traded in the same way.
Managing Your Real Estate Investment Trusts
As with any other type of investment, there is some risk associated with investing in a REIT. However, there are varying levels of risk depending on the REITs you choose. Your financial advisor will monitor your investment in your REIT. If the REIT does not perform as predicted, your advisor will suggest the best solution to manage your REIT in order to meet your financial goals.
Our Certified Financial Planners©
Figuring out the right REITs for your financial portfolio can be a little confusing. Your financial advisor will be able to discuss your options to help you choose the right REIT for your needs. We are very knowledgeable in all areas of investment planning, and can answer any questions you may have about REITs.