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
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2
Q

REIT - Advantages (5)

A
  1. liquidity
  2. hedge price movement
  3. income
  4. diversification
  5. prof mgmt
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3
Q

REIT - Risk (3)

A
  1. no control over portfolio
  2. bad loans, loss income
  3. DIV taxed @ full ord income
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4
Q

Equity Reit

Mortgage Reit

Hybrid Reit

A

Equity Reit

trust owns property

Mortgage Reit

trust owns mortgages

Hybrid Reit

holds property & mortgages

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5
Q

To Qualify as a REIT

  • Structure
  • Finances
  • Assets
  • Income
  • Trade
A

No LP or Investment Co.

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6
Q

To Qualify as a REIT

  • Structure
  • Finances
  • Assets
  • Income
  • Trade
A

pass thru income,

not losses

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7
Q

To Qualify as a REIT

  • Structure
  • Finances
  • Assets
  • Income
  • Trade
A

75% in real estate

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8
Q

To Qualify as a REIT

  • Structure
  • Finances
  • Assets
  • Income
  • Trade
A

75% from rent and mortgage interest

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9
Q

To Qualify as a REIT

  • Structure
  • Finances
  • Assets
  • Income
  • Trade
A

OTC

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