Understanding Real Estate Investment Trusts

 So you want to be a landlord without having the problem of repairing
faulty roofs and lights? Maybe real estate investment trusts (REIT)
are for you. These structures are basically legal structures to allow
investors to get access to the rental proceeds via dividends. These
rental proceeds are net of property management fees and other legal
fees pursuant to the transaction.

Developers use this instrument to offload properties in their stable
into the real estate investment trusts so as to generate cash to
purchase other commercial buildings while retaining a sizeable stake
in the REIT. Each year or half yearly depending on the REIT, they
distribute rental income in the form of dividends to investors. Things
to take note off include what the properties in the REIT are.
Sometimes developers try to move their non-performing assets into the
REIT so that their listed companies can report better illusory
earnings and you should take note of this.

Now that we have explained what a REIT is, the rest of the article
will highlight three reasons why you might want to invest in a REIT.
read more....

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Disclaimer…The subject matters expressed above is based purely on
technical analysis and personal opinions of the writer. it is not a
solicitation to buy or sell