Real estate investment – Different forms of REIT that you can try

[This is an article from a guest blogger, Gabriel Knight, who would like to share this information with you.  We bring you guest bloggers from time to time to broaden the content that we can offer.  I hope you find this useful.]

Real Estate Investment Trusts (REIT) provide different options to individual investors, so that they can earn a portion from the income which is produced through the ownership of commercial real estate properties. The greatest part about these investments is that you aren’t required to even go out in order to be able to buy commercial real estate properties. The different forms of income-producing real estate assets owned by a REIT may include the likes of the office buildings, hotels, resorts, apartments, warehouses, shopping malls, self-storage facilities, and mortgages. So, while investing in the real estate market, it is important for you to ask various questions, just as it is important for you to ask mortgage questions.

Different REIT investments

The different forms of mortgage backed REIT investments are the likes of:

  1. Retail REIT – This comprises 24% of REIT investments and are mainly supposed to be based on the in shopping malls and also the freestanding retail outlets. This is thought to be the best form of investment in America. Almost all of the shopping centers which you frequent are mainly to be owned by one of the REITs. They in general, make money through the rents.
  2. Mortgage REIT – It is 10% of all of the REIT investments which are supposed to be in the mortgages. The greatest known investments are those of Fannie Mae and Freddie Mac. However, just because this kind of REIT invests in mortgages instead of the equity, it doesn’t necessarily mean that it does not have any risks associated. If the interest rate increases it can result in a decrease in the mortgage REIT.
  3. Healthcare REIT – Healthcare REITs invest mainly in the hospitals, medical centers, and nursing facilities and also may include some retirement homes. The success with regards to this investment option, is directly proportional to the healthcare system. The returns depend on the occupancy fees, Medicare and the reimbursements collected through Medicaid, and so on.
  4. Residential REIT – Residential REITs are the ones which own and operate rental apartments and multi-family buildings, along with manufactured housing estates.  However, before you actually invest your money into this option, it would be better for you to consider all of the factors. Like for example, the greatest form of apartment market stays on the side of low home affordability, in comparison to the whole of the nation. In general, the biggest REITs depend on the urban residential centers.

So, these are some of the investment options with regards to REIT which you can try. Other than this, there can also be some other REIT investment options like those of Office REIT, and so on.

Gabriel Knight
Guest Blogger

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