Real Estate Investment Trust
There are three types of Real Estate Trusts:
- Real Estate Investment Trust (REIT)
- Real Estate Mortgage Trust (REMT)
- Combination Trust.
Each type of trust has particular benefits, yet ALL only have a single tax being imposed at the beneficiary level which can make a trust an intriguing investment opportunity.
REIT's are one of the best investments in a volatile market because they provide a stable income stream and their real estate holdings are a hedge against inflation.
REIT’s are of improved income properties, which include some or all of the following:
- Apartments
- Office Buildings
- Shopping Centers
- Industrial Parks
Formed as an equity trust, the REIT can offer small investors the opportunity to pool their money and participate as owners of larger more efficient and profitable real estate investments, at least in theory.
The REIT's income is derived from the rents secured from specific properties it owns, in addition there is further profit realized for the trust when those properties are sold. REIT's are subject to income tax only at the participant's level.