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Looking Into REITs? Here are a Few Facts You Need to Know

Real estate

A real estate investment trust is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks. If you are curious about what is a real estate investment trust, here are a few more facts you need to know.

REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

REITs were created in the United States when President Dwight D. Eisenhower signed into law the REIT Act title contained in the Cigar Excise Tax Extension of 1960. REITs were created by Congress in order to give all investors the opportunity to invest in large scale, diversified portfolios of income, producing real estate in the same way they typically invest in other asset classes, through the purchase and sale of liquid securities. If you are curious about how to invest in a REIT or why invest in REITs, here are a few important facts that you need to know.

Since then, more than 20 countries around the world have established REIT regimes, with more countries in the works. Since more people are asking what is a real estate investment trust, the spread of the REIT approach to real estate investment around the world has also increased awareness and acceptance of investing in global real estate securities.

Douglas E Fleit has earned a Masters of Real Estate degree from Johns Hopkins University, and a Bachelor of Arts degree in Economics from the University of Maryland. This means that you will not need to worry about choosing a company that will be able to help you find out how to invest in a REIT. You will also probably be able to help yourself make a lot of money in the long run.

From 2008 to 2011, REITs faced challenges from both a slowing United States economy and the late-2000s financial crisis, which depressed share values by 40 to 70 percent in some cases. Because of their access to corporate-level debt and equity that typical real estate owners cannot access, REITs have a favorable capital structure. They are able to use this capital to finance tenant improvement costs and leasing commissions that less capitalized owners cannot afford.

Now that you know a bit more about what is a real estate investment trust, make sure that you hire a professional like Douglas Fleit to help you before investing. Read this for more: www.americanrepartners.com

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