{"id":11940,"date":"2017-09-13T10:59:06","date_gmt":"2017-09-13T17:59:06","guid":{"rendered":"http:\/\/www.marketriders.com\/investing\/?p=11940"},"modified":"2017-09-13T10:59:06","modified_gmt":"2017-09-13T17:59:06","slug":"investor-facts-real-estate-investment-trust","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/","title":{"rendered":"Investor Facts: What Is A Real Estate Investment Trust?"},"content":{"rendered":"<p>A real estate investment trust (REIT) type of security\u00a0that holds real estate investments.<\/p>\n<p>Much the way a\u00a0mutual fund\u00a0holds shares of many companies, a real estate investment trust (REIT) owns <a href=\"https:\/\/www.marketriders.com\/investing\/real-estate-investment-with-less-risk\/\">real estate<\/a> investments.<\/p>\n<p>It holds in the form of direct ownership (equity REITs) or indirectly by holding mortgages (mortgage REITs). Or, it could be a mix of the two strategies (hybrid REITs).<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-11941 size-large\" src=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2017\/08\/chile-house-1633433_1920-800x533.jpg\" alt=\"real estate investment trust\" width=\"640\" height=\"426\" srcset=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2017\/08\/chile-house-1633433_1920-800x533.jpg 800w, https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2017\/08\/chile-house-1633433_1920-300x200.jpg 300w, https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2017\/08\/chile-house-1633433_1920-768x512.jpg 768w, https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2017\/08\/chile-house-1633433_1920.jpg 1920w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>A REIT is a security that provide a simple way to add exposure to real estate to\u00a0your investment account. In addition, they offer\u00a0tax privileges that typically result in\u00a0<a href=\"https:\/\/www.marketriders.com\/investing\/investor-facts-yield\/\">higher yields<\/a>\u00a0for investors.<\/p>\n<p>Unlike with\u00a0a stock\u00a0that pays dividends, the majority of income from the\u00a0real estate portfolio is not\u00a0subject to income taxes at the corporate level. Rather, it largely flows through to be\u00a0taxed only at the level of the individual investor.<\/p>\n<p>REITs can invest in all types of real estate: residential, retail, industrial \u2014 even timber land. Some invest in properties to rent or sell at a profit while others seek income by owning mortgages. A third, hybrid type does both.<\/p>\n<p>A REIT can trade on a public stock exchange (called public REITs) or be in the form of a private investment offering.<\/p>\n<p>Public REITs resemble ordinary stocks, provide a liquid way to add real estate to a portfolio and allow for easy rebalancing. Real estate <a href=\"https:\/\/www.marketriders.com\/investing\/mutual-fund-fees-too-high-heres-why\/\">mutual funds<\/a> are made up of publicly traded REIT investments.<\/p>\n<h2>Powerful diversifier<\/h2>\n<p>Real estate is a powerful\u00a0diversifier\u00a0for a portfolio. It provides a real asset whose long-term returns have kept up with inflation.<\/p>\n<p>While the past provides no guarantee for the future, there have been many shorter periods over the last 15 years where real estate buoyed portfolios during downturns in the stock market.<\/p>\n<p>In addition, income from real estate can provide a relatively high yield compared to most\u00a0<a href=\"https:\/\/www.marketriders.com\/investing\/investor-facts-interest-income\/\">income investments<\/a>.<\/p>\n<p>Over the long run, as inflation increases often so do rents, though in the short run this may not be the case.<\/p>\n<p><small><i>MarketRiders, Inc. is a registered investment adviser.\u00a0 Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.\u00a0 Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and\/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.<\/i><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A real estate investment trust (REIT) type of security\u00a0that holds real estate investments. Much the way a\u00a0mutual fund\u00a0holds shares of many companies, a real estate investment trust (REIT) owns real &hellip; <a href=\"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/\">Read more <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":11941,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[65],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Investor Facts: What Is A Real Estate Investment Trust? | MarketRiders<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Investor Facts: What Is A Real Estate Investment Trust? | MarketRiders\" \/>\n<meta name=\"twitter:description\" content=\"A real estate investment trust (REIT) type of security\u00a0that holds real estate investments. Much the way a\u00a0mutual fund\u00a0holds shares of many companies, a real estate investment trust (REIT) owns real &hellip; Read more &rarr;\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2017\/08\/chile-house-1633433_1920.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@marketriders\" \/>\n<meta name=\"twitter:site\" content=\"@marketriders\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"MarketRiders\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/\",\"url\":\"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/\",\"name\":\"Investor Facts: What Is A Real Estate Investment Trust? | MarketRiders\",\"isPartOf\":{\"@id\":\"https:\/\/www.marketriders.com\/investing\/#website\"},\"datePublished\":\"2017-09-13T17:59:06+00:00\",\"dateModified\":\"2017-09-13T17:59:06+00:00\",\"author\":{\"@id\":\"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.marketriders.com\/investing\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Investor Facts: What Is A Real Estate Investment Trust?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/#website\",\"url\":\"https:\/\/www.marketriders.com\/investing\/\",\"name\":\"MarketRiders.com\",\"description\":\"How To Become A Better Investor\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.marketriders.com\/investing\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c\",\"name\":\"MarketRiders\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g\",\"caption\":\"MarketRiders\"},\"sameAs\":[\"https:\/\/www.marketriders.com\"],\"url\":\"https:\/\/www.marketriders.com\/investing\/author\/support\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Investor Facts: What Is A Real Estate Investment Trust? | MarketRiders","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/","twitter_card":"summary_large_image","twitter_title":"Investor Facts: What Is A Real Estate Investment Trust? | MarketRiders","twitter_description":"A real estate investment trust (REIT) type of security\u00a0that holds real estate investments. Much the way a\u00a0mutual fund\u00a0holds shares of many companies, a real estate investment trust (REIT) owns real &hellip; Read more &rarr;","twitter_image":"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2017\/08\/chile-house-1633433_1920.jpg","twitter_creator":"@marketriders","twitter_site":"@marketriders","twitter_misc":{"Written by":"MarketRiders","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/","url":"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/","name":"Investor Facts: What Is A Real Estate Investment Trust? | MarketRiders","isPartOf":{"@id":"https:\/\/www.marketriders.com\/investing\/#website"},"datePublished":"2017-09-13T17:59:06+00:00","dateModified":"2017-09-13T17:59:06+00:00","author":{"@id":"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c"},"breadcrumb":{"@id":"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.marketriders.com\/investing\/investor-facts-real-estate-investment-trust\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.marketriders.com\/investing\/"},{"@type":"ListItem","position":2,"name":"Investor Facts: What Is A Real Estate Investment Trust?"}]},{"@type":"WebSite","@id":"https:\/\/www.marketriders.com\/investing\/#website","url":"https:\/\/www.marketriders.com\/investing\/","name":"MarketRiders.com","description":"How To Become A Better Investor","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.marketriders.com\/investing\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c","name":"MarketRiders","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g","caption":"MarketRiders"},"sameAs":["https:\/\/www.marketriders.com"],"url":"https:\/\/www.marketriders.com\/investing\/author\/support\/"}]}},"_links":{"self":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts\/11940"}],"collection":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/comments?post=11940"}],"version-history":[{"count":3,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts\/11940\/revisions"}],"predecessor-version":[{"id":11951,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts\/11940\/revisions\/11951"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/media\/11941"}],"wp:attachment":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/media?parent=11940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/categories?post=11940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/tags?post=11940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}