This is your Green Grosser helping you gross green today. Now we will be discussing Real Estate Investment Trusts. A Real Estate Investment Trust or REIT is a company that owns and operates income producing real estate, such as apartments, shopping centers, offices and hotels. The different types of REITs are Equity, Mortgage, Hybrid, and Private. In order to qualify as a REIT, an entity must meet a number of requirements. For example, a REIT must be formed in one of the 50 states as a taxable entity. In addition, at least 75% of a REIT’s annual income must come from real estate. A REIT must also distribute at least 90% of the sum of its taxable income in the form of shareholders dividends. Investors typically invest in REITs for high levels of current income and opportunities for moderate long-term growth. Furthermore, REITs offer investors high dividends yields, liquidity, portfolio diversification (minimizing risk) and consistent dividend growth. Nevertheless REITs are not the right choice for everyone. For example, they are typically not a good choice for closely held family business. Also, a danger can be that with the 90% cash flow requirement to shareholder dividends, the REIT may not leave enough in reserve to meet catastrophic events such as a proper loan loss reserve requirement, unexpected repairs, etc. From, this is you Green Grosser with your tip to help you gross green today.