One may choose to indirectly invest in real estate by purchasing shares in a REIT. In general, a REIT is an entity that:
- pools the capital of many investors to acquire or provide financing for real properties;
- enables individual investors to invest in a professionally managed portfolio of real estate assets; and
- avoids the “double taxation” at the corporate and stockholder level that generally results from investments in a corporation.
There is no assurance that these goals will be achieved.
Tax laws are subject to change.