REITs 101: Invest in Real Estate Without Buying Property

You do not need $100,000 and a mortgage to invest in real estate. You need one share of a REIT.

A REIT (Real Estate Investment Trust) is a company that owns income-producing property — apartments, malls, warehouses, data centers — and trades like a stock. By law, REITs pay out most of their income as dividends.

Why investors like them

• Real estate exposure with stock-like liquidity — buy and sell instantly.

• High dividend income, since REITs must distribute most profits.

• Diversification beyond just stocks and bonds.

The trade-offs

REIT prices move with interest rates and can be volatile. Dividends are usually taxed as ordinary income. They are a piece of a portfolio, not a guaranteed win.

REITs turn real estate from a six-figure commitment into a one-share decision.

Educational content, not financial advice. Talk to a licensed professional about your situation.