Whois & Analysis for reit.com

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit.

Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.

Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent.

If these factors are not well understood and managed by the investor, real estate becomes a risky investment.

The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency.

A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short term profit with less effort.

A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate.

REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and timberlands.

Some REITs engage in financing real estate.

The law providing for REITS was enacted by the U.S. Congress in 1960.

The law was intended to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

REITs are strong income vehicles because, to avoid incurring liability for U.S. Federal income tax, REITs generally must pay out an amount equal to at least 90 percent of their taxable income in the form of dividends to shareholders.

Income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.

However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents, and other forms of earnings received...

in a given period of time.".

A company, abbreviated co., is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise.

Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.

Companies take various forms such as:

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e. the amount borrowed).

It is distinct from a fee which the borrower may pay the lender or some third party.