A Reit is any vehicle that is designed for investors to pool
capital to invest in real estate assets, provided that it meets
certain tax requirements. They are usually publicly traded,
which adds greater liquidity and allows investors to exit at
any time. For US tax purposes they are a pass-through entity,
meaning that there is no tax at the entity level. And the Reits
pay dividends to the investors.
There are several different types of Reits equity,
mortgage and hybrid. Equity Reits directly invest in property
and draw investment from the rents; mortgage Reits...