Getting to Know more about the Types of REITs
Many people are still wondering which if the better investment between buying a rental property or investing in REITs. With REITs, be well aware that the returns to be derived will be more with ten percent when compared to investing in real estate. This is the reason as to why there are so many investors who are finding REITs a very good opportunity to invest in. REITs happens to be reliable and also stable and they are the perfect way for all investors who will want to grow their money. There are various things about REITs that you will need to know when it comes to REITs. When it comes to this kind of investment, here are some of the things that you will need to check on.
It might be that you are not familiar with this type of investment though you will need to know that it is a real estate investment trust. Note that a company has real estate assets such as properties and mortgages and these funds will offer investors with ownership. Real estate portfolio is where you will place your money when you decide to invest in REITs.
REITs companies have properties which generate income such as commercial space, condos, rental properties or even a combination of all these. The company will then get the income form the properties and then distribute this income to members. The investors will receive the return to investment after the income they have earned is distributed. Note that there are a variety of REITs that are out there and you will need to know each one of them before you can make a decision of the one you want to work with. Here are the different types of REITs which are available and which you will need to know about so that you can make a decision of the one that you want to deal with.
Mortgage REITs happens to be the very first type of REIT that you will come across out there. These types of REITs can be said to be finance deals for real estate which will generate income for you. Mortgage REITs will buy mortgage or securities from the bank which the loan originated from and now make money on the interest to be paid.
Another type of REIT that you can invest in Is the public traded REITs. In case the REIT a can be traded on a stock exchange, then you will need to know that it is a publicly traded REITs. There is a regulatory body for this kind of bonds.