How Do REITs Work?
Original link: https://www.youtube.com/watch?v=yDl1_uLR5Os
REITs, or real estate investment trusts, were created by Congress in 1960 to give all individuals the opportunity to benefit from investing in income-producing real estate. REITs allow anyone to own or finance properties the same way they invest in
other industries, through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment, without actually having to go
out and buy or finance property.
This video provides some insight into what REITs are and how they work. The REIT industry has a diverse profile, which offers many benefits. REITs often are classified in one of two categories: Equity REITs or Mortgage REITs. Equity REITs own a wide range of property types including offices, shopping centers, hotels, apartments and much more. Equity REITs derive most of their revenue from rent on those properties.
Mortgage REITs may finance both residential and commercial properties. Mortgage REITs get most of their revenue from interest earned on their investments in mortgages or mortgage backed securities.
In addition, REITs may be publicly registered with the SEC and have their shares listed and traded on major stock exchanges, or they may be publicly registered with the SEC but not have their shares listed or traded on major stock exchanges, or they may be private companies (not registered with the SEC and not having their shares listed or traded on a stock exchange.
Regardless of the type, REITs operate under a specific set of rules established by Congress. A REIT is an entity that:
• is modeled after mutual funds
• is treated by the Internal Revenue Code as a corporation
• must be widely held by shareholders
• must primarily own or finance real estate, and
• must own its real estate with a longterm investment horizon.
The IRS implements the REIT rules and oversees what qualifies as a REIT. The Internal Revenue Code requires a REIT to adhere to the following essential rules: at least 75 percent of the corporation's income must be earned from real estate as rent, real estate interest or from the sales of real estate assets; at least 75 percent of the corporation's assets must be real estate assets; and, at least 95 percent of income must be passive.
REITs are required to distribute at least 90 percent of taxable income annually to shareholders as taxable dividends. In other words, a REIT cannot retain its earnings. Like a mutual fund, a REIT receives a dividends-paid deduction so no tax is paid at the entity level if 100 percent of income is distributed. REIT shareholders pay taxes on dividends at ordinary rates versus the lower qualified rate.
Over time, REITs and the rules and regulations that govern them have evolved to meet the changing needs of the real estate industry and the broader economy. But throughout that process, REITs have remained true to the mission laid out by Congress in 1960: to make the benefits of income-producing real estate accessible to anyone and everyone. And that's still how they work today.
By Mitch Irzinski
Continue to site →
- Real Estate Investment Trust (Organization Sector)
- commercial real estate
- REIT rules
- how reits work
- what is a reit
- Mortgage REITs
- Equity REITs
【股票教学】什么是REIT？房地产跟股票的结合 | sparkliangWatch
Real Estate Investment Trust (REIT) in India - Explained in HindiWatch
This Is How Warren Buffett REALLY Made 85 Billion DollarsWatch
5 Fehler die Anleger mit ETFs machen - ETF Gefahren 🚨Watch
Wie man passives Einkommen macht (3 legit Modelle von jemandem, der $ 5 + Million online machte)Watch
Trade Like a Casino for Consistent Profits by Adam KhooWatch
EURO BANKS COLLAPSING?! 🛑 Bitcoin and Gold FOMO 2019/2020Watch
Oil Price Volatility Has Given CorEnergy Infrastructure Trust DisciplineWatch
THE BIGGEST MISTAKE YOUNG PEOPLE MAKE - ROBERT KIYOSAKIWatch
The best way to become a millionaire in five years or less 02Watch
Calculating Numbers on a Rental Property [Using The Four Square Method!]Watch
STAG Industrial CEO Says REIT Wants to Demonstrate the “Positive Impact of Data”Watch
How to Properly Manage Your Money Like the Rich | Tom FerryWatch
Real Estate Investment Trusts for DummiesWatch
Tax LOOPHOLES The Rich Don't Want You To Know -Robert KiyosakiWatch
5 Steps to Becoming a Millionaire - Grant Cardone Trains His Sales Team LIVEWatch
Warren Buffett: Investment Advice & Strategy - #MentorMeWarrenWatch
Chris Graeve - STOCKS VS. REAL ESTATE - Which has a better Return on Investment?Watch
See alsoHow Do REITs Work? 3gp mp4 HD video, How Do REITs Work? Video Songs, Video, How Do REITs Work? bollywood movie video 3gp, How Do REITs Work? video Download mp4 , How Do REITs Work? hindi movie, songs download, How Do REITs Work? all video download, How Do REITs Work? Hd Video Songs, How Do REITs Work? full song download, How Do REITs Work? Movie Download, How Do REITs Work? HD video Download, Mp4 Songs Download, video, 3gp, mp4 download, How Do REITs Work? Bollywood Songs, New Song,Out Now!, How Do REITs Work? Android Video, Full PC Video
best of estonia / estonian music, Hea Eesti muusika (Good Estonian music), Popular Estonian Music Videos, Estonian folk music - Handi paadimehe lugu, One Hour of Soviet Estonian Music, NOËP - New Heights (Live at Estonian Music Awards 2018), Estonian Music Sharing Company
best of estonia / estonian music, Estonian folk music - Handi paadimehe lugu, Velly Joonas - Stopp, Seisku Aeg! (FULL 7", soul, Estonia, USSR, 1980-1983), Popular Estonian Music Videos, Hea Eesti muusika (Good Estonian music), One Hour of Estonian Patriotic Music
Endzeit Metal Kneipe Altenessen - Heavy Metal Made in Germany, Halt endlich mal die Fresse - Wortmord - Live 2012 (HD), Dominik Milošević - Z Dvoržak-Peppi czardas, Wortmord ´- Willkommen im Club der lebenden Leichen - Live (HD), Wortmord - Harmonie - Live 2012 - Frank Blackfire, Grave Violator (HD)
マキシマム ザ ホルモン - Wikipedia, THE BLUE HEARTS SUPER TRIBUTE - ウィキペディア, 【アルバム詳細レビュー】マキシマム ザ ホルモン、5thフルアルバム『予襲 ..., 5-35 マキシマム ザ ホルモン 皆殺しのﾒﾛﾃﾞｨ (Cover Off Vocal) - YouTube, THE BLUE HEARTS 皆殺しのメロディー LIVE_VERSION - YouTube, マキシマム ザ ホルモン/THE BLUE HEARTS SUPER TRIBUTE ...