Real Estate Investment Trusts (REITs)

REIT Basics

A REIT is a company that owns and manages a portfolio of real estate properties. Like a traditional stock mutual fund, REITs offer investors the opportunity to buy shares of fractional ownership in the entire portfolio. However, unlike traditional stock mutual funds, REITs are obligated to distribute 90% of their taxable income to shareholders every year. REITs can focus their portfolio on specific geographic regions or categories of property. REIT income comes from revenue generated by the properties.

Advantages of Investing in REITs

  • Diversification away from stock market risk
  • Access to real estate markets through a portfolio of properties
  • Low initial investment required compared to purchasing property individually

Investors Who May Want to Consider Investing in REITs

  • Investors who want access to real estate markets
  • Investors looking for diversification away from stock market risk
  • Dividend-oriented investors

What DCS Wealth Management Provides

  • Access to various real estate-focused investment companies who are committed to quality properties and income strategy objectives
  • Experienced investment professionals to guide you through your options