What is a real estate investment trust?

Real estate investment trusts take the fuss out of owning real estate. Management handles all of the ownership and rental logistics—you just sit back and collect dividends, which are frequently higher than many stock-based investments. You can buy and sell shares of REIT stock in the market via a brokerage account, like any other public company.

How do you invest in real estate?

Here are the most popular real estate investment methods: Rental properties. REITs. Real estate investment groups. Flipping houses. Real estate limited partnerships. Real estate mutual funds. Let's dive deeper into how these work. Rental properties are among the most hands-on options on this list.

Are real estate investment trusts a good investment?

Real estate investment trusts (REITs) provide indirect real estate exposure without the need to own, operate, or finance properties. Real estate has long been considered a sound investment, and for good reason. Before 2007, historical housing data made it seem like prices could continue to climb indefinitely.