What is a REIT?

 

A: A REIT, or Real Estate Investment Trust, is a type of security. Some sell like a traditional stock on major exchanges while others do not. As the name implies, REITs invest in real estate by purchasing property, mortgages, or both property and mortgages. Investors typically purchase shares of a REIT, or a REIT may be included as part of their mutual fund investment.

Congress created REITs in 1960 to allow more individual investors to take advantage of the potentially profitable, income-producing real estate market. While REITs can potentially yield high profits, they are not without risks. REITS that do not sell on public exchanges are particularly risky. Their value may be inaccurate, they are also harder to sell than publicly traded REITs and often require higher commissions and fees.

If you have lost money in an REIT investment that was an unsuitable investment for you or that was a result of your broker's investment misconduct, then you may have the right to recover damages.

The Law Firm of Meyer Wilson regularly represents clients in stockbroker mediation, arbitration, and litigation claims. If you've lost money in a REIT because of Columbus stockbroker fraud, then please contact one of our Ohio investment fraud attorneys today at 614-224-6000 for a free consultation. We also encourage you to read our FREE book: Five Signs of Investment Fraud... And What to Do if it's Happened to You for more information.