REITs have pros and cons, but they are a popular choice for individual investors because IRS rules require them to pay out a high percentage of their income to shareholders in the form of dividends.
A REIT is a specialized type of investment company that owns, operates, and/or finances commercial real estate.To invest, individuals can purchase REIT shares, which provides them with a proportionate share of the income and profits produced by portfolio properties.  REITs have pros and cons, but they are a popular choice for individual investors because IRS rules require them to pay out a high percentage of their income to shareholders in the form of dividends.