Real Estate Stocks: What They Are and How To Invest In Them

Real estate stocks can involve any publicly traded stock for a business that touches the real estate market in some shape, form, or fashion.

A major advantage of investing in real estate stocks is that you don’t have to have as much money to get started as you would directly buying the physical property.

Like buying a property, finding the best opportunities, and investing in real estate stocks will require research and due diligence.

A REIT, or real estate investment trust, is a company that owns, operates, or finances income-producing real estate. They can either be private or public, with the publicly traded REIT being the more popular of the two.

Investors can buy these shares by purchasing individual company stock, mutual funds, or exchange-traded funds (ETF).

In exchange for receiving favorable tax treatment (they can avoid corporate taxation), REITs must distribute 90% of their profits in the form of dividends. The dividend revenue comes from rental income and capital gains.