A Complete Guide To Mortgage REITs (mREITs)

Mortgage real estate investment trusts (mREITs) allow investors to invest in the real estate market, particularly the mortgage market, without needing to buy an investment property themselves. Want to find out more about these unique funds? Read on to learn more about how mREITs work and the pros and cons of investing in them.

What Is An REIT?

A real estate investment trust (REIT) allows you to invest in the real estate market without having to buy a property yourself. Instead, an REIT is a publicly traded company that allows investors to buy shares in the real estate market. REITs may focus on a segment of the real estate market, such as residential properties and/or commercial properties.

An investor can purchase shares in an REIT as they would any other public stock or as part of an exchange traded fund (ETF) or mutual fund. Like any kind of investment, it’s possible to see a regular return on investment but there is also potential risk of loss.