What is a real estate investment quizlet?

What exactly is real estate investing?

Real estate investing involves the purchase, management and sale or rental 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.

What is a real estate investment trust quizlet?

*A real estate investment trust (REIT) is a company that pools its capital to purchase properties and/or mortgage loans. Investors buy REIT shares and, in turn, receive dividends from investment income or capital gains distributions. REIT shares are traded on exchanges much like the stocks of other companies.

Why is real estate considered an investment quizlet?

-Reasons to invest in real estate include a hedge against inflation, tax benefits, cash flow, appreciation, and passive income.

What is an example of a real estate investment?

Commercial Real Estate

Hotels, warehouses, offices and retail stores are all examples of commercial real estate investments. These types of investments are typically considered active as well and involve the investor owning and renting out a space to a business that will use it.

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What is an example of real estate?

Vacant land and residential lots, plus the houses, outbuildings, decks, trees sewers and fixtures within the boundaries of the property are examples of real estate. … REITs own, and often operate, income-producing real estate such as office buildings, apartments, shopping centers, warehouses and hotels.

What does REIT stand for quizlet?

Real Estate Investment Trust. What is a REIT? A company that manages a portfolio of real estate investments in order to earn profits for shareholders. REITs are normally traded publicly and serve as a source of long-term financing for real estate projects.

What are the two types of real estate investment trusts?

The two main types of REITs are equity REITs and mortgage REITs, commonly known as mREITs. Equity REITs generate income through the collection of rent on, and from sales of, the properties they own for the long-term. mREITs invest in mortgages or mortgage securities tied to commercial and/or residential properties.

Why is real estate an investment?

Real estate investors make money through rental income, appreciation, and profits generated by business activities that depend on the property. The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage.

What is considered an investment quizlet?

The act of redirecting resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit. The system that allows the transfer of money between the savers and borrowers. You just studied 11 terms!

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What is an advantage of investing in real estate quizlet?

Advantages of real estate investment include the following: rate of return, tax advantages, hedge against inflation, leverage, and equity buildup. Disadvantages of investing in real estate include the following: illiquidity, local market, need for expert help, management requirements, and risk.