REITs: A Viable Alternative to Direct Real Estate Investing?

Imagine you want to invest in real estate, but don't want to buy a whole building.

REITs are like a special type of fund that owns lots of real estate.

When you buy into a REIT, you get income from the rent the buildings collect.

REITs have to give out most of their income each year.

However, the value of your investment in a REIT can go up or down depending on what's happening in the stock market, even if the buildings are doing well.

Real estate gives you ownership satisfaction, but REITs make investments easier to manage.

If you're thinking about REITs, remember to check how the REIT is doing, the types of properties they have, and how well those properties are being used.