Reits
If you find yourself asking what are reits then you may be interested in real estate investing. REITs are real estate investment trusts. In other words, it’s a way for casual investors who don’t have hundreds of thousands of dollars to purchase actual real estate to invest in actual real estate. They work just like mutual funds where a large group of people pool their money together in order to make many purchases and therefore have a diversified portfolio of real estate investments. They can invest in home mortgages, land, and commercial real estate.
They have a few different rules for things like how the distribute dividends, so it makes sense to do some research before you purchase. You’ll want to make sure they are in the right tax category, but it makes sense to add real estate to your portfolio for diversification.