Is Real Estate Investment Trusts a Good Career Path?

If you are interested in or have been following the financial markets, undoubtedly, you have run across the term Real Estate Investment Trust (REIT). But, unfortunately, there needs to be more clarity about what a REIT is and its purpose in a real estate portfolio.

Whether you are interested in REITs as an investor or wondering if it’s a good career pathway, this article will help educate you on what a REIT is, how they work, who they are for, and what it may be like working in one.

What are REITs?

REITs are a way for investors to pool their money in order to make real estate investing more accessible. Similar to how it would be very difficult or impossible for the vast majority of people to manufacture, market, and service a brand-new smartphone, they can still reap the financial rewards of such a business by investing in Apple stock.

Difference Between REITs and Syndications

A syndication is a similar type of investment, although there are critical differences between a syndication and a REIT. The most significant difference is the size of the initial investment.

Why Do Investors Like REITs?

Not only are REITs great for everyday investors because they make real estate investing is more accessible, but there are some rules and regulations that REITs must follow to return their profits to the investors in the form of a dividend.

What Kind of REITs are There?

Like how mutual funds publish a prospectus listing what types of securities they invest in, REITs do the same thing. In the prospectus, the REIT lists what real estate investments they will purchase with the investors’ money.

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