Top Facts You Need to Know Before Investing in REIT
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.
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. 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.
Brian L Katz 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.
According to IBIS World research, the commercial real estate industry employs an estimated 4,308,177 people in the United States.
According to IBIS World, commercial real estate companies typically develop commercial, industrial and multifamily residential property, and manage the purchasing or renting of that property as well.
Real estate partners help investors evaluate the risks involved with purchasing and maintaining commercial property.
Commercial real estate investment can allow for a consistent cash inflow due to rental and other resident fees associated with the property.
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