How do REITs invest in commercial real estate?

REITs own and/or manage income-producing commercial real estate, whether it's the properties themselves or the mortgages on those properties. Where REIT investing is concerned, you can invest in the companies individually, through an exchange-traded fund, through real estate crowdfunding, or with a mutual fund.

Are REITs a good investment?

REITs are companies you can invest in that buy real estate. These properties are often rented out, producing income. REITs distribute at least 90% of their income to their investors in the form of dividends. REITs are an easy way to invest in real estate without having to own property yourself. What is a REIT?

How do you invest in a REIT?

This is a big draw for investor interest in REITs. Invest at least 75% of total assets in real estate or cash. Receive at least 75% of gross income from real estate, such as real property rents, interest on mortgages financing the real property or from sales of real estate. Have a minimum of 100 shareholders after the first year of existence.