Mammoney - Your Ultimate Guide to Personal Finance & Investing

Investing in U.S. REITs: A Beginner’s Guide Introduction Real Estate Investment Trusts, commonly known as REITs, have emerged as a pivotal vehicle for democratizing access to the vast and lucrative world of real estate investing in the United States. Originating from legislation passed by Congress in 1960, REITs were designed to allow everyday investors to participate in large-scale, income-producing real estate portfolios without the need to directly purchase, manage, or finance properties themselves. This innovation mirrors the structure of mutual funds but applies it to real estate assets, enabling individuals to buy shares in companies that own and operate commercial properties like office buildings, shopping malls, apartments, hotels, and even specialized facilities such as data centers or healthcare centers. The relevance of REITs today cannot be overstated, especially in an economic landscape marked by inflation concerns, volatile stock markets, and the perpetual quest for passi...