What Is A Real Estate Investment Trust?
A real estate investment trust is a device that permits you to invest in real estate and property but without the usually hassles associated with purchasing such property on your own. You can read more useful tips of real estate investments at http://realestategameworks.com/colorado-continuing-education-classes/.
A real estate investment trust (REIT) is a system where a group of investors collectively gather their funds into a legal trust and invest in various forms of real estate. If you've ever heard of other investment mechanisms such as mutual funds, you'll understand the way real estate investment trusts are supposed to work. A real estate investment trust may also be known as a REIT and a REIT invests in different types of property.
The different types of property that are invested in may be residential or commercial or even for leisure purposes. Simple real estate investment trust (REIT) may invest in property as a simple as an apartment block or as complex as a group of hotels and leisure parks. Some real estate investment trusts even own shopping centers and movie theatres and it all depends of the purposes of the people who initially set up the real estate investment trust.
People may also invest in such devices in order to get loans and securities which are backed by this real estate investment trust (REIT) and mortgages. As with any investment device, a certain form of risk is always involved and methods have been created to effectively handle these types of risk.