mortgage simple definition: What are REITs?🏩

What are REITs?🏩

What are REITs?🏩. How Do REITs Work?

What are REITs?🏩 video duration 1 Minute(s) 39 Second(s), published by Huuti on 17 02 2019 - 04:38:02.

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Read more at the blog: https://blog.huuti.co.uk/what-are-reits/ Say hi What is a REIT or Real Estate Investment Trust? How Equity REIT and Mortgage REIT work? SEBI REIT Regulations in India? Explained in Hindi
REITs work .

REITs made modest gains in January, as investors continued to size up potential changes to the macroeconomic environment, market watchers said This video is part of The Motley Fool's "Ask a Fool" series
Have a question about stocks, investing, a specific company, managing your money, or any other Jason Thomas, CFP® is a financial educator with Pure Financial Advisors
In this video, Jason explains the purpose of Real Estate Investment Trusts (REITs) in .

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Transcript:

What are REITS?

Reits are like mutual funds which own properties and generate income through renting, financing and selling properties.

Shares of REITS can be bought on the major stock market exchanges and just like stocks. Investors then receive dividend payments proportional to their stock.

REITS are a cheaper way to earn from property investments especially if you can't afford to finance a property such as commercial offices or retail outlets on your own. REITS do this by pulling the financial resources of a lot of people together and managing properties on their behalf.
There are:

Equity Reits: where Investors own properties and generate revenue through rental income

Mortgage Reits: these allow investors to own property mortgages, purchase mortgages from lenders and loan money for mortgages. Profits are made from the interest received on the mortgages

Hybrid Reits: these are a combination of both equity and mortgage reits.
Reits are liquid assets and usually have great tax benefits based on their regulatory origin.

In most cases REITS payout over 90% of their earnings to investors as dividends which make them very attractive to investors.

Reits can be private or public. This means you can buy their shares on stock exchanges and for private Reits you will have to contact the REit provider.

In recent times crowdfunded peer to peer investment vehicles for properties have started trading just like REITS.