01 Stock REITs Flashcards
1
Q
REIT
name
DIV from
redeemable (Y/N)
A
Real Estate Investment Turst
- DIV from income or captial gains
- not redeemable
2
Q
REIT - Advantages (5)
A
- liquidity
- hedge price movement
- income
- diversification
- prof mgmt
3
Q
REIT - Risk (3)
A
- no control over portfolio
- bad loans, loss income
- DIV taxed @ full ord income
4
Q
Equity Reit
Mortgage Reit
Hybrid Reit
A
Equity Reit
trust owns property
Mortgage Reit
trust owns mortgages
Hybrid Reit
holds property & mortgages
5
Q
To Qualify as a REIT
- Structure
- Finances
- Assets
- Income
- Trade
A
No LP or Investment Co.
6
Q
To Qualify as a REIT
- Structure
- Finances
- Assets
- Income
- Trade
A
pass thru income,
not losses
7
Q
To Qualify as a REIT
- Structure
- Finances
- Assets
- Income
- Trade
A
75% in real estate
8
Q
To Qualify as a REIT
- Structure
- Finances
- Assets
- Income
- Trade
A
75% from rent and mortgage interest
9
Q
To Qualify as a REIT
- Structure
- Finances
- Assets
- Income
- Trade
A
OTC