Real Estate Investment Trust
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Real estate investment Trusts (REITs) can be public or private corporations or trusts that pools investor capital to invest in real estate or related assets. REITs that qualify under the Internal Revenue Code are eligible for tax benefits that reduce or eliminate income taxes owed. Public REITs may be traded on national exchanges similar to stocks.
The three major types of REITs include:
Equity REITs, which owns and invests in real estate properties and makes money from collected rents
Mortgage REITs, which owns and invests in real estate mortgages or in financial vehicles backed by mortgages and makes money from interest earned on mortgage loans
Hybrid REITs, which invests in both properties (Equity REIT) and mortgages (Mortgage REIT)
Available Positions Related to Real Estate Investment Trust: