REIT - Real Estate Investment Trust

A Real Estate Investment Trust or REIT is to real state what a mutual fund is to stocks. REITs generally invest into multiple types of real estate like apartment homes, condominiums, high rises, etc. There are three kinds of REITs:

  • Equity REIT

    Equity REITs invest in real estate like apartments and make money from the equity in the real estate and the rent they collect.
  • Mortgage REIT

    Mortgage REITs lend money to other developers and make money of the interest.
  • Hybrid REIT

    Hybrid REITs are generally a combination of Equity REIT and Mortgage REIT.

Some REITs invest specifically in one type of real estate like hotels or office buildings where some REITs many specifically invest in only one region of the country.

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