Here are Different Types of REITs for You to Invest In!

Real estate Investment Trust (REIT) is an association or a corporation that manages and owns a wide range of real estate properties.
They allow the shareholders to invest their money in these income generating and large-scale real estate. REITs combine the advantages of real estate’s appreciating values and liquidity, and also transparency of stocks that are traded publicly.

Due to this, and various other benefits, REITs are becoming a popular form of investment all over the globe. If you are interested in investing in REITs, you can checkout various websites of well-known corporations; one of them being Stag Industrial. Stag Industrial, Inc. mainly targets industrial properties owned by single-tenant throughout United States. What are The Various Types of REITs in Which You Can Invest?

REITs give you the benefits of investing in real estate without having to buy an entire house. Just like other stock types, majority of REITs are traded on crucial stock exchanges. They also provide the advantage of diversification of portfolios to its investors. Here are the various types of REITs you can invest in:

• Equity REITs: Most of the REITs are equity REITs. They have direct ownership rights and right to operate on the real estate properties. The revenue thus generated is acquired from the rents that the tenants pay. This is then distributed as dividends among the shareholders.
• Mortgage REIT: This kind of REIT is involved in real estate’s financing aspect. It may own or invest in commercial mortgages, residential mortgages, and commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS).
• Hybrid REIT: Hybrid REIT invests in, operates and owns mortgage-backed securities and/or mortgages.
• Traded vs. Non Traded REITs: Majority of the REITs are traded in public, and have more liquidity than non-traded REITs (that have low up-front fees).

It is always easier to invest in REITs rather than buying a house for the sake of investing in real estate. However, you need to absolutely sure about which kind of REITs you want to invest your money in. You should do proper research work before taking any step, as hastiness with financial investment is not the wisest thing to do.