Friday, May 30, 2008

What is a REIT?

In short, the term REIT stands for Real Estate Investment Trust. A REIT is a company that owns and most often will manage income producing real estate. The US Congress established the REIT back in the late 1960s to give small investors the opportunity to invest in large income producing real estate. Most REIT stocks are traded freely on most major stock exchanges.

There are over 180 REIT entities today. Most REITs focus on one particular type of real estate. Others handle the management and the maintenance of real estate.

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