Definition
A company that owns or finances income-producing real estate, allowing you to invest in property without directly buying it.
What to consider
- Consider REITs if you want exposure to real estate without owning property directly.
- Review dividend yields and performance trends.
- Keep an eye on market conditions affecting the real estate sector.
Real world scenarios
- Simone invests in a REIT specializing in shopping centers, receiving quarterly dividends from tenants’ lease payments.
- Omar diversifies his portfolio by adding a healthcare REIT, spreading risk across different real estate sectors.
- Market shifts influence how REIT share prices move, but stable rental income often supports consistent dividend payouts.
Related terms
Related Playbooks
Get instant access to all our expert playbooks and 1-1 financial coaching when you join the Bolder Money community. Learn more here.
Real Estate & Homeownership
Quick Guide to Accurate Property Values: Real Estate & Vehicle Worth Calculator
