Since 2003, Suneet Singal has served as principal of First Capital Real Estate in Sacramento. An experienced entrepreneur in the areas of finance and real estate, Suneet Singal manages a domestic real estate investment trust.

1. What Are Real Estate Investment
Trusts?
Suneet Singal

2. Introduction
 Since 2003, Suneet Singal has served as principal of First Capital
Real Estate in Sacramento. An experienced entrepreneur in the
areas of finance and real estate, Suneet Singal manages a domestic
real estate investment trust.
A real estate investment trust, or REIT, is an investment vehicle that
allows individuals to invest in real estate without buying individual
properties. Investors purchase shares in REITs on major stock
exchanges as a way to diversify their investments. Shareholders pay
the taxes on an REIT’s dividends in exchange for a steady stream of
income.
Investors can choose from two major types of REITs: equity and
mortgage. By investing in the former, investors receive income that
the REIT derives from the rent and sale of properties. On the other
hand, mortgage REITs generate income through mortgages and
mortgage securities for both residential and commercial properties.
REITs must have a minimum of 100 shareholders, and no five
investors can own over 50 percent of all shares. REITs must also
invest at least 75 percent of their assets in U.S. Treasury securities,
cash, or real estate.