FAQ: What is a REIT?

A Real Estate Investment Trust (REIT) is similar to a mutual fund, but instead it invests in the ownership of income properties or mortgage instruments. In short, It is a passive way to invest in real estate. You buy and sell shares in a REIT just like you do in a mutual fund, while relying on a management team to buy and sell properties and handle their management. Equity REITs purchase properties for income in the multi-family and commercial real estate sectors including apartment buildings, office suites, shopping malls, and more.

It may sound a little confusing, but it is a fantastic way to make yourself money because they perform very well. The REIT management team buys the properties and manages them for income. As a shareholder, you receive 90% of REIT profits as dividends based on your proportional ownership. Again, it’s a passive way to invest in ownership of commercial properties; meaning you do not have any responsibilities in the day-to-day responsibilities of owning the building.

If you are interested in learning more about the potential of being a shareholder in a REIT situation like this in the Chappaqua area, you should reach out to us at Brisco Funding to learn more. We are a private lending company that offers less risk, greater diversity, more security and better returns than many other investment opportunities. With Mortgage REIT’s, your investment goes into a pool of funds which is then lent out to one or more borrowers. Interest is collected from the borrowers and then paid out to investors as dividends on a monthly basis. When the loans are paid back, the funds are immediately recycled into a new loan, so your investment is always at work for you. Fill out a contact form to find out more.