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Real estate investment trust companies offer many options for investors. These companies have strict regulations that have to be followed and many investors find the return on these appealing. For people who are not certain about other types of products in the stock market, these can sometimes be an appealing choice. This type of financial product first appeared in 1960. Congress voted to provide a way for smaller investors to harness the power of large-scale real estate investments. This allowed people to pool assets to make purchases of properties that they would not be able to obtain as individuals. IRS regulations about how these companies are to be run and managed are fairly strict. These companies have to have at least 75% of their assets in real estate. They must also be able to show that 75% or more of the income comes directly from rents. It can also come from mortgage interest if the real estate investment trusts are the types that provide financing instead of owning property. In this case, the 75% rule still applies. People like this type of financial product because it allows them a great deal of flexibility as to what type of product is chosen. Some people will be particularly interested in working with rental properties like multifamily housing units. These investors may feel that this is a good area to focus on as housing is always in demand no matter what the economy. Others may want shopping centers, strip malls or other retail stores. There are types that focus on industrial buildings, warehouses or other types of commercial offerings. A few people want products that have a wide variety of types of buildings. Some of these products work with mortgage lending instead of purchasing properties. Anyone who thinks that they might be interested in this type of financial vehicle can find a real estate investment trust list on the net. There are about 150 publically traded REITs. As with all types of financial investment services, people will want to educate themselves as much as possible before actually investing. As with all investment types, there may be some risks involved. It may be helpful to see what each company can show in terms of returns on the products. As with all stocks, there is no guarantee of appreciation. Most people feel comfortable with the fact that there is a return in the form of either rents paid or interest on property loans. Real estate investment trust companies have helped many people to build a retirement fund. For more information with real estate investment trust companies, please visit us on our website.
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