How to Build Wealth Through Real Estate Without Owning Property (REITs Explained)
ByOlivier
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3. REIT Types
REITs come in a variety of forms, each concentrating on a certain aspect of real estate investing.
Income-producing real estate is owned and managed by equity REITs. They are the most prevalent kind of REIT and receive income from rent payments.
Investments in mortgages and mortgage-backed securities are made by mortgage REITs, or mREITs. They make money from the interest on loans rather than rent.
Hybrid REITs provide exposure to both rental revenue and mortgage interest by combining the tactics of equity and mortgage REITs.
Like ordinary stocks, public REITs can be bought and sold on stock exchanges. Private and non-traded REITs are also available, although they usually have more restrictions and are less liquid.
