A REIT is a real estate investment trust. Think of it like a mutual fund that owns real estate.
REITs typically own commercial, retail, or rental real estate.
An example of commercial real estate owned by REITs would be large, multi-floor office buildings, often used as headquarters for medium to large sized companies.
An example of retail real estate owned by REITS would be stores like WalMart, PetsMart, or Ultimate Electronics. Many of these companies lease their store locations rather than own them.
An example of rental real estate owned by REITS would be apartment buildings.
REITS can be publicly traded, which means they have a ticker symbol, and you could easily look up their share price and dividend yield on the internet.
Some REITS are not publicly traded. Although they are still a registered security, they do not have a ticker symbol. You must buy shares directly from the real estate company offering them (or through one of their sales representatives). Non-publicly traded REITS are less liquid than their publicly traded counterparts.
