If you don’t want to be a landlord, you might consider option number three: investing in real estate through a REIT (real estate investment trust). REITs are diversified real estate investment companies that purchase and manage rental real estate for investors. A typical REIT invests in different types of property, such as shopping centers, apartments, and other rental buildings. You can invest in REITs either through purchasing them directly on the major stock exchanges or through a real estate mutual fund that invests in numerous REITs.
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