Whats an REIT and what are the advantages/disadvantages of it?
Answers:
A REIT is a Real Estate Investment Trust. It give you a passageway to invest in TRUE estate (mainly commercial) short directly own any buldings, shopping centers,etc. They are more juice than direct ownership contained by valid estate. Some REITs invest in mortgages, so you involve to be capable of differentiate between the differeing types of REITs. REITs are abandon vehicle, which technique they pay cheque 90% of their income out in the form of dividends. The disadvantage is that you are tied to the physical estate marketplace, which from time to time could experience liquidity/credit issues close to the mortgage souk is experiencing.