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Types of REITs
As we have discussed in the
Introduction
to REIT, REIT's invest in Real Estate either directly or somewhat
indirectly. There are three main types of REIT's.
Equity REITs: Equity REIT's invest directly in Real Estate and own the
properties and therefore responsible for the properties' asset value.
Their revenues come primarily from properties' rent.
Mortgage REITs: A mortgage REIT originates, buys and/or sells
mortgages for real estate property owners. Their revenues primarily come
from the interest off their mortgages.
Hybird REITs: Hybirds combine the investing priciples of mortgage and
equity REITs, diversifying between mortgages and direct property ownership.
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