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- About Us

• Contact Us
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• Glossary
• Información en Español
  
  - Introduction to Investing - Getting Going - Five Questions to Ask Before You Invest
• Understanding Fees
• Asset Allocation
• Assessing Your Risk Tolerance
• Spending for Your Own
• Dealing with an Investment Professional
• Researching Investments
  
  - Save and Invest
• Invest For Your Goals
• How Stock Markets Work
• Investment Products
• What is Risk?
• Role of the SEC
• Glossary
  
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  - Financial Tools - Investment Professional Background Check
• EDGAR - Search Company Filings
• Fund Analyzer
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  - Fraud - Types of Fraud.
• How to Avoid Fraud.
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  Breadcrumb
  
  1. Home.

2. Introduction to Investing.
3. Investment Products
   
   Main navigation
   
   - Save and Invest - Define Your Goals.

• Diversify Your Investments.
• Figure Out Your Finances.
• Gauge Your Risk Tolerance. - Discover Investment Options.
• Settle Credit Cards or Other High Interest Debt.
• Save for a Rainy Day.
• Small Savings Amount To Big Money.
• Understand What It Means to Invest
  
  - Public Companies.
• Market Participants.
• Kinds of Orders.
• Types of Brokerage Accounts.
• Stock Purchases and Sales: Long and Short.
• Executing an Order
  
  - Auction Rate Securities.
• Bonds or Fixed Income Products - Bonds.
• Corporate Bonds.
• High-yield Corporate Bonds.
• Municipal Bonds.
• Savings Bonds
  
  - Interval Funds.
• Publicly Traded Business Development Companies (BDCs). - Publicly Traded Closed-End Funds
  
  - Annuities.
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• Variable Annuities.
• Variable Life Products
  
  - Alternative Mutual Funds.
• Leveraged Loan Funds.
• Exchange-Traded Funds (ETFs).
• Index Funds.
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• Smart Beta, Quant Funds and other Non- Traditional Index Funds. - Target Date Funds
  
  - Hedge Funds. - Private Equity Funds
  
  - 401( k).
• 403( b) and 457( b).
• IRA (Individual Retirement Accounts)
  
  - How to Submit Comments to the SEC.
• Researching the Federal Securities Laws Through the SEC Website.
• The Laws That Govern the Securities Industry
  
  Real Estate Investment Trusts (REITs)
  
  What are REITs?
  
  Real estate investment trusts (" REITs") enable individuals to buy large-scale, income-producing genuine estate. A REIT is a company that owns and typically runs income-producing real estate or associated properties. These may include office complex, shopping malls, apartment or condos, hotels, resorts, self-storage centers, warehouses, and mortgages or loans. Unlike other real estate companies, a REIT does not establish realty residential or commercial properties to resell them. Instead, a REIT buys and develops residential or commercial properties mainly to operate them as part of its own investment portfolio.
  
  Why would somebody buy REITs?
  
  REITs supply a method for individual investors to earn a share of the earnings produced through commercial real estate ownership - without really having to go out and buy business genuine estate.
  
  What types of REITs are there?
  
  Many REITs are registered with the SEC and are publicly traded on a stock market. These are understood as openly traded REITs. Others might be registered with the SEC however are not publicly traded. These are known as REITs (also called non-exchange traded REITs). This is one of the most important differences among the different kinds of REITs. Before investing in a REIT, you need to understand whether it is openly traded, and how this could impact the advantages and threats to you.
  
  What are the advantages and threats of REITs?
  
  REITs offer a way to include genuine estate in one's investment portfolio. Additionally, some REITs might use greater dividend yields than some other financial investments.
  
  But there are some dangers, particularly with non-exchange traded REITs. Because they do not trade on a stock market, non-traded REITs involve unique risks:
  
  Lack of Liquidity: Non-traded REITs are illiquid investments. They typically can not be offered easily on the open market. If you require to sell a possession to raise money rapidly, you may not have the ability to do so with shares of a non-traded REIT. Share Value Transparency: While the market cost of an openly traded REIT is readily accessible, it can be hard to identify the worth of a share of a non-traded REIT. Non-traded REITs normally do not supply a quote of their value per share till 18 months after their offering closes. This may be years after you have made your financial investment. As an outcome, for a significant period you may be unable to examine the worth of your non-traded REIT financial investment and its volatility. Distributions May Be Paid from Offering Proceeds and Borrowings: Investors may be attracted to non-traded REITs by their reasonably high dividend yields compared to those of openly traded REITs. Unlike publicly traded REITs, nevertheless, non-traded REITs frequently pay circulations in excess of their funds from operations. To do so, they might utilize providing proceeds and loanings. This practice, which is typically not utilized by publicly traded REITs, minimizes the worth of the shares and the cash readily available to the company to acquire additional possessions. Conflicts of Interest: Non-traded REITs typically have an external supervisor rather of their own staff members. This can result in potential disputes of interests with investors. For example, the REIT may pay the external supervisor considerable costs based upon the amount of residential or commercial property acquisitions and assets under management. These charge rewards might not always line up with the interests of investors.
  
  How to buy and offer REITs
  
  You can purchase a publicly traded REIT, which is listed on a significant stock market, by acquiring shares through a broker. You can acquire shares of a non-traded REIT through a broker that participates in the non-traded REIT's offering. You can also acquire shares in a REIT shared fund or REIT exchange-traded fund.
  
  Understanding fees and taxes
  
  Publicly traded REITs can be acquired through a broker. Generally, you can purchase the common stock, preferred stock, or financial obligation security of an openly traded REIT. Brokerage charges will use.
  
  Non-traded REITs are typically offered by a broker or financial advisor. Non-traded REITs typically have high up-front charges. Sales commissions and in advance offering charges generally amount to roughly 9 to 10 percent of the investment. These expenses lower the value of the financial investment by a significant quantity.
  
  Special Tax Considerations
  
  Most REITS pay out at least 100 percent of their taxable earnings to their shareholders. The investors of a REIT are accountable for paying taxes on the dividends and any capital gains they get in connection with their investment in the REIT. Dividends paid by REITs typically are dealt with as normal earnings and are not entitled to the minimized tax rates on other types of corporate dividends. Consider consulting your tax adviser before buying REITs.
  
  Avoiding fraud
  
  Be careful of any person who tries to offer REITs that are not signed up with the SEC.
  
  You can validate the registration of both publicly traded and non-traded REITs through the SEC's EDGAR system. You can likewise use EDGAR to review a REIT's yearly and quarterly reports in addition to any offering prospectus. For more on how to utilize EDGAR, please go to Research Public Companies.
  
  You should likewise examine out the broker or financial investment consultant who advises buying a REIT. To discover how to do so, please go to Working with Brokers and Investment Advisers.
  
  Additional details
  
  SEC Investor Bulletin: Real Estate Investment Trusts (REITs)
  
  FINRA Investor Alert: Public Non-Traded REITs - Perform a Careful Review Before Investing
  
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