REIT vs Real Estate Developer

Although both offer opportunities for generating income through premier real estate property, they have different roles in the overall scheme of things.

A Real Estate Investment Trust (REIT)

REIT typically purchases existing, fully-rented properties and distributes cash flow from them to their shareholders, which is a requirement that 90% of its net income be paid as dividends.

A REIT is a real estate investment company. That means that they own and hold title to real estate. They also most likely rent that real estate for profit.

Pros: suitable for any budget, higher than average dividends, and potential for appreciation

Cons: Property-specific risks

A Real Estate Developer

Pros: have more choices to consider.

Cons: require a significant amount of time and effort, illiquid.

Bottom line

Forbes: “Data Proves REITs Are Better Than Buying Real Estate

About Metain

Connect with us to stay updated on new investment opportunities on Twitter and Telegram.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Metain.io

We redefine the way people invest in real estate through an easy, convenient, transparent, and trustworthy co-investing experience.