What is a Real Estate Investment Trust (REIT)?
A Real Estate Investment Trust (REIT) is a type of investment vehicle that owns and operates income-producing real estate properties. REITs pool money from multiple investors to purchase and manage a diversified portfolio of properties such as office buildings, shopping malls, apartments, hotels, warehouses, and other commercial properties.
REITs are generally publicly traded on stock exchanges and offer investors an opportunity to invest in real estate without directly owning physical property. They provide a way for individual investors to access real estate investments that would otherwise require significant amounts of capital and expertise.
REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends, which makes them attractive to income-seeking investors. In addition, they may also provide capital appreciation if the value of their underlying properties increases over time.
Use Hotel 1031 Exchanges to Increase Investment Returns
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