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Getting to Know more about the Types of REITs

You might also be among the group of people who are wondering about what it worth more between investing in REITs and purchasing rental properties. Note that when it comes to the returns of REITs, they are more with ten percent every year. It is for the high return that there are so many people making an investment in this area since the investment is very attractive. REITS are stable as well as reliable and this will be perfect for any kind of investor who wants to grow their money. You will need to make sure that you have a great idea about the existence of REITs so that you can know how you are going to grow your money. When it comes to REITs, you will need to check on the following tips which will help you in making the right choice.

It might be that you are not familiar with this type of investment though you will need to know that it is a real estate investment trust. Note that a company has real estate assets such as properties and mortgages and these funds will offer investors with ownership. It will be very possible for you to put your money in the real estate portfolio same as you would do in a mutual.

REITs companies have properties which generate income such as commercial space, condos, rental properties or even a combination of all these. The REIT firm will make the income from these properties and this will be distributed to members. This will now be your share of profit. Remember that there are a variety of different REITs which you can invest in and this will affect which one you want to invest in. Here are the different types of REITs which are available and which you will need to know about so that you can make a decision of the one that you want to deal with.

When it comes to REITs, you will need to know that the first type is the mortgage REIT. These types of REITs can be said to be finance deals for real estate which will generate income for you. Mortgage REITs will buy mortgage or securities from the bank which the loan originated from and now make money on the interest to be paid.

Publicly traded REITs happens to be the second type of REITs that you can invest In. In case the REIT a can be traded on a stock exchange, then you will need to know that it is a publicly traded REITs. You will need to know that when it comes to REITs, there is a regulatory body which oversees the performance.