Real estate investing is a profitable enterprise that can make property owners filthy rich. At the same time, it’s also time-consuming, stressful, and capital intensive. This is especially true in the initial stages of property development, and it can often become a full-time occupation.
But for those looking for a passive investment, there is a much easier way to invest in real estate. It requires less capital, less time, and often pays out a hefty dividend, too. It’s called a real estate investment trust (REIT), and below we’ll help you understand what it is and how to invest in one.
What is a real estate investment trust (REIT)?
A real estate investment trust or REIT (pronounced ‘REET’) is a company that pools together investor money to buy and manage real estate.
REITs are structured like mutual funds, except instead of holding a portfolio of different stocks, a REIT portfolio holds various income-producing…
