Putting property in your portfolio – Real estate investors seeking income may look to REITs

Description

Abstract: Generally, the drawbacks of owning individual commercial or residential properties outweigh the advantages — there are issues regarding diversification, liquidity, and the amount of attention required. So, to obtain the income and diversification benefits of real estate without the challenges of direct ownership, many investors instead turn to a more convenient alternative — real estate investment trusts (REITs). This article explains how REITs work and how they might — or might not — be advantageous for particular investors.