Can you tell me how a real estate investment fund works?
Can you tell me how a real estate investment fund works?
user
If a real estate investment fund is made up of real estate, it’s probably one of the following types: (1) REITs (Real Estate Investment Trusts), (2) Real Estate Investment Companies (REICs), or (3) Real Estate Companies (RECs).  The first two types of real estate investment fund
assistant
Yes I mean a REIT.
user
Ok, we can do this.  A real estate investment fund (REIT) is a fund that buys and sells investments in real estate, and in some cases it holds real estate in its own portfolio.  So a REIT invests its money and works with other REITs, just like any fund does.  The most common type of REIT is a REIT that invests in residential rental housing, but they can also invest in other types of real estate.  There are also REITs that invest in commercial properties, retail, hotels, and infrastructure like roads, bridges, and railways.  REITs are subject to SEC regulations that govern the activities of all publicly-traded investment funds.  Like other investment funds, the fund may have shares that people can buy and sell.  In some cases, the assets of a REIT are held in a special trust, called a taxable REIT subsidiary, or TRS, and the assets are
assistant
What are common types of REITS?
user
One of the most common types of REIT is one that buys and sells properties like apartments, retail stores, or office buildings.  The business of buying, selling, and managing real estate is called Real Estate Investing.  There are also two types of real estate investment trusts that are more commonly known.  One is a residential REIT, or one that invests in residential real estate like apartments or houses.  The other is a non-residential REIT, or one that invests in non-residential property like hotels, commercial real estate like shopping centers, or infrastructure like bridges and roads.  However there are lots of different types of REITs that can invest in different types of property.  For example, there are REITs that invest in timberland, health care facilities, data centers, or energy infrastructure.  Real estate investment trusts, or REITs, invest in properties of different types.  A common type is a REIT that
assistant
Thanks and how do you earn money from a REIT investment?
user