Let us break this down
1.A bunch of investors give money to an organization
2.Who uses that money to purchase buildings
3.On a certain date, money is passed back to the investor
4.This all equals a REIT
Now let us piece this together; first, a bunch of investors give money to an organization, (like crowd-sourcing). Now that organization uses that money to purchase buildings, usually in a specific area. Now on a certain date, monthly, quarterly or yearly, the income generated from rent or mortgages is passed back down to the investor! #moneyface. This all equals a REIT. Note: Once the buildings are sold, investors get a payout based on percentage owned and appreciation
•Real Estate Investment Trust or REIT is a type of investment that can either be invested through the means of the stock market or through a private investment (as shown above).
•They are specifically invested in real estate, picture it like “crowd-funding” but for buying properties
•Liquid when invested in Stock Market REIT (works like a mutual fund, which Orcas know are like dating)
•Required to payout 90%, which means more money for you! #moneyface
•When buildings are sold, investors earn appreciation percentage owned! #blessed
•Equity REIT: When they give income from rent to the investors
•Mortgage REIT: When they give income from interest on mortgages (Tied to mortgage rates)
•Hybrid REIT: Mix of both equity and mortgage
REITs are a way for an average investor to diversify their portfolio into real estate and generate higher yields. Just like us, REITs come all in shapes and sizes, which is great as you can find the one that is perfect just for you!
If you would like to learn more about how you can get into REITs either public or private ones, please reach out here and we can put you in touch with one of our partners.