What is the difference between a REIT Real Estate Investment Trust and a direct real estate investment?

What is the difference between a REIT (Real Estate Investment Trust) and a direct real estate investment Introduction: The World of Real Estate Investment Hello everyone, and welcome to today's video. Real estate has always been a popular investment option, offering the potential for long-term growth and income. Traditionally, direct real estate investments have been the go-to choice for many investors. However, in recent years, Real Estate Investment Trusts, or REITs, have gained significant traction. Today, we'll delve into the key differences between these two investment options, shedding light on their unique characteristics and benefits. Understanding REITs: A Brief Overview Let's start by understanding what a REIT is. A REIT is a company that owns, operates, or finances income-generating real estate. It could be a residential property, commercial building, or even a shopping mall. What sets REITs apart is their structure. To qualify as a REIT, a company must distribute at least 90% of its taxable income to shareholders in the form of dividends. This unique structure allows investors to access real estate assets without directly owning them. Direct Real Estate Investments: The Traditional Approach