Unlocking the Potential: Understanding Real Estate Investment Trusts (REITs)
Real estate investment can be a lucrative venture, but it often requires substantial capital and expertise. However, there's a vehicle that allows individuals to invest in real estate without directly owning properties: Real Estate Investment Trusts, or REITs. Angel Bernal Robles of Montgomery discusses below what REITs are, how they work, and the potential benefits they offer to investors. What are REITs? Real Estate Investment Trusts, commonly known as REITs, are companies that own, operate, or finance income-producing real estate across various sectors. These sectors may include residential, commercial, industrial, retail, or even specialized properties like healthcare facilities or data centers. REITs pool capital from multiple investors to invest in a diversified portfolio of properties, similar to mutual funds but focused on real estate assets. How do REITs work? REITs generate income primarily through rental payments from tenants of the properties they own or through inter