REITs are Real Estate Investment Trusts. They allow you to invest in different types of real estate. REITs are available on the market for any real estate niche whether you want to invest in hotels, apartments, commercial buildings, etc.
Why It's Important
Most people think the only way to invest in real estate is to buy a house or rental property. REITs are traded on the stock exchange (just like stocks and bonds) to take advantage of the volume of people coming together to invest in bigger projects. They offer another form of diversification in your portfolio.
Be sure to invest in liquid REITs sold on the exchange and not illiquid REITs that are hard to get rid of!
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