The Role of REITs: Investing in Real Estate Without Buying Property

How Real Estate Investment Trusts Make Real Estate Accessible to Everyday Investors

Real estate has long been a popular way to build wealth, but buying physical property can be challenging — requiring significant upfront capital, ongoing maintenance, and management. Enter Real Estate Investment Trusts (REITs), a more accessible way to invest in real estate without the hassles of owning property. REITs allow individuals to enjoy the benefits of real estate investments, such as regular income and portfolio diversification, without the barriers typically associated with property ownership. Here’s everything you need to know about REITs and why they’re a great addition to any investment portfolio.

What Are REITs?

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. REITs pool money from many investors to purchase and manage a diverse range of properties, including commercial real estate like office buildings, retail spaces, apartments, hotels, and industrial warehouses. The income generated from these properties is then distributed to investors in the form of dividends.