Marc A. Hebert’s ‘Money $ense’: Real estate for income and diversification | Money Sense

Approximately 145 million Americans own real estate investment trusts (REITs) for the income they generate and the diversification they can add to a portfolio. Maybe you are one of them. Here are some of the characteristics these investments have to help decide whether REITs are suitable for inclusion in your portfolio.



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REITs are basically publicly traded securities (just like stocks) that combine money from investors to be able to invest in real estate. REITs offer investors of all sizes the ability to have real estate exposure in their portfolio without having to directly own and manage investment real estate. Because REITs are publicly traded, they can be easier to buy and sell than real estate. There is no need to make large down payments for the property or any other issues associated with the buying process. These responsibilities are left to the REIT management team.

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Marc A. Hebert, MS, CFP, is an executive member and president of asset management and financial planning firm The Harbor Group of Bedford. Email questions to Marc at [email protected]