What Is A Real Estate Investment Trust (REIT)?

A Real Estate Investment Trust (REIT) is a security that trades like any asset on an exchange, similar to an ETF. A REIT pools the funds of investors and then invests it into real estate via mortgages or properties.

There are 3 main kinds of REIT:

  • Mortgage - loaning money for mortgage purposes and receiving the interest payments
  • Equity - investing in actual properties and owning a stake in them and receiving money either from rent or from resale
  • Hybrid - combination of Equity and Mortgage

Related Terms

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