Real Estate Investment Trust “REIT”
Real Estate Investment Trust AKA REIT
A Real Estate Investment Trust is an investment vehicle that allows a company or corporation to use the combined investments of many to invest in & purchase real estate property.
Similar to Mutual Funds in function, REITs give all investors the opportunity to own valuable real estate , present the chance to access dividend-based income and total returns and help revitalize, cultivate, and advance communities.
REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF).
To Qualify as a REIT , the company or corporation must comply with certain provisions in the IRS code.
A few of the Most important requirements include:
- Invest at least of 75% of assets in real estate Cash or U.S Treasurys.
- Receive at least 75% of its gross income from real property rents, interest on mortgages financing the real property, or from sales of real estate
- Return a minimum of 90% of its taxable income in the form of shareholder dividends each year
- Have a minimum of 100 shareholders after its first year of existence
- Have no more than 50% of its shares held by 5 or fewer individuals during the last half of the taxable year.