REIT (Real Estate Investment Trust)

Definition

A company that owns income-producing real estate, selling shares to investors—real estate for people who don't want to deal with actual property.

Example Usage

The investor diversified his portfolio by adding REIT shares to his real estate holdings.

Origin

Established by Congress in 1960 to democratize real estate investment

Fun Fact

REITs generate most returns from tenants' rent payments, meaning your dividends are literally someone else's housing costs.

Source: Securities and Exchange Commission (SEC) Standards

Related Terms

Beginner

fixture

Personal property that has been permanently attached to real estate and legally becomes part of the property. The eternal battleground of what stays and what goes when you sell.

🏠 Real Estate

Advanced

Loan-to-Value Ratio (LTV)

The loan amount as a percentage of property value, essentially how much risk the lender is taking on your deal.

🏠 Real Estate

Intermediate

Comps

Short for comparables, these are recently sold nearby homes that agents use to justify whatever price they want. Finding the right comps is an art form -- you just cherry-pick the ones that support your narrative.

🏠 Real Estate

Beginner

quit claim deed

A deed transferring whatever interest the grantor has in property, if any, with zero warranties or guarantees. The 'I might own this, I might not, good luck!' document of real estate transfers.

🏠 Real Estate

Intermediate

covenant

A legally binding promise or restriction in a deed governing how property can be used, often imposed by developers to maintain neighborhood character. It's your neighbor's legal standing to care way too much about your fence height.

🏠 Real Estate

Intermediate

Assessed Value

The government's opinion of what your property is worth, used exclusively to calculate how much tax you owe. It's magically always high enough to maximize your tax bill but too low to impress your neighbors.

🏠 Real Estate

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