where can i find more information about REITs?

Question

I want to invest in real estate and am looking for an easy way to do so. I've heard about REITS, but am having difficulty finding out how I can buy into this.

Answer 1

A good source that I have found are title companies, if you are just learning about them. Stewart Title is a nationwide company, if they're in your area call and ask for an appointment, they give classes. REITs can be a very good investment, make sure you read and understand the fine print.

Answer 2

From Investopedia: "So what exactly is a REIT? Well, it's a trust company that accumulates a pool of money, through an initial public offering (IPO), which is then used to buy, develop, manage and sell assets in real estate. The IPO is identical to any other security offering with many of the same rules regarding prospectuses, reporting requirements and regulations; however, instead of purchasing stock in a single company, the owner of one REIT unit is buying a portion of a managed pool of real estate. This pool of real estate then generates income through renting, leasing and selling of property and distributes it directly to the REIT holder on a regular basis."

Probably the most important, advantage of investing in REITs is the fact that they are required to distribute nearly 90% of their yearly taxable income, (created by income producing real estate) to their shareholders. This amount is deductible on a corporate level and generally taxed at the personal level. So, unlike with dividends, there is only one level of taxation for the distributions paid to investors. This high rate of distribution means that the holder of a REIT is greatly participating in the profitability of management and property within the trust, unlike in common stock ownership where the corporation and its board decide whether or not excess cash is distributed to the shareholder.

There are some very good REITs that trade just like stock.
if you go to this link:
http://biz.yahoo.com/ic/ind_index.html
you can click on the type of REIT you want to invest in, and then get the name of specific REITs that you can invest in.

Good Luck!

Answer 3

You buy REITs just as you buy stocks. For more information, check out Natoinal Association of Real Estate Investment Trusts web sites:

http://www.nareit.org/
http://www.investinreits.com/