Let's talk real estate

We often see REIT used in different formats. REIT is an acronym for Real Estate Investment Trust. A REIT is a security that sells like a stock on the major security exchanges and invest in real estate directly, either through properties or mortgages.

Individuals can invest in REIT's either by purchasing their shares directly on the open exchange or by investing in a mutual fund that specializes in public real estate. A benefit to investing in REIT's is the fact that many are accompanied by dividend reinvestment plans {DRIPs}. REITs usually invest in larger properties like shopping malls, apartments, warehouses and hotels.