What kinds of REITs are out there?

There are several different kinds of REITs out there on the market and before you choose the on for you, you need to learn about each of them. The following are a few of the different kinds of REITs:

Mortgage REITs
This type of REIT is the one that will be dealing with mortgaged properties. This REIT will purchase mortgages as investments. They will also loan money to those who own real estate and invest in mortgage backed securities. The vast majority of the money that these REITs make is made through mortgages.

Equity REITs
An equity REIT will either purchase property outright or invest in it to a smaller extent. The money that is made through these REITs is made through rental income.

Hybrid REITs
These REITs are a combination of the above REITs. They will make use of properties and mortgage in order to make the most money.

REITs are a specialized type of investment. Each REIT will have its own focus. Some will focus all of their investments I one area of the country and others will focus on a specialized type of investment, like apartment buildings or offices, while others will not choose to narrow their opportunities so much. These REITs will invest in many different types of investments like mortgage properties and rental properties and they will often also widen their geographical focus.