Introduction: What Are REITs? Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate. They allow individual investors to earn dividends from real estate investments without having to buy, manage, or finance properties directly. This guide explores how REITs function, their benefits, risks, and how investors can effectively include them in their portfolios. How REITs Work Types of REITs Equity REITs : Own and manage income-producing properties like offices, apartments, shopping centers, and warehouses. They generate income primarily through rent. Mortgage REITs : Provide financing for real estate, earning income from the interest on mortgages and loans. Hybrid REITs : Combine elements of both equity and mortgage REITs, investing in properties and providing financing. Benefits of Investing in REITs Consistent Dividend Income REITs are required by law to distribute at least 90% of their taxable income to shareholders, making th...
Accelerated Investment Blueprint is a blog dedicated to in-depth financial analysis. It covers long-term investment strategies, stock portfolio construction, and tech stock investments. Through practical guides on macroeconomic trends, ETF versus mutual fund comparisons, and dividend stock strategies, it empowers investors with actionable insights to grow wealth and manage risk effectively.