Understanding Real Estate Investment Trusts (REITs)

July 8, 2025

What are REITs?

Real Estate Investment Trusts (REITs) allow individuals to invest in large-scale, income-producing real estate without having to buy properties directly. They are companies that own, operate, or finance income-generating real estate.

Benefits of Investing in REITs

  • Liquidity: REITs are traded on major exchanges, making them easy to buy and sell.
  • Diversification: Investing in REITs provides exposure to various real estate sectors.
  • Dividends: REITs typically pay out a significant portion of their income as dividends.

Investing in REITs can be an excellent way to gain exposure to real estate without the complexities of direct ownership.

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