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1.
A major difference between a REIT and a real estate limited partnership is that _______.
A REIT is governed by an elected board of directors. A real estate limited partnership, on the other hand, is led by a general manager, who sometimes cannot be easily removed by investors.
2.
A real estate investment trust is most likely to invest in _______.
Factory outlet malls. About one fifth invest in retail enterprises, including shopping centers and factory outlet malls. Lower numbers of REITS also invest in many other different types of real estate, such as residential developments, hotels and resorts, self-storage businesses, and health-care facilities.
3.
If you lose money on your REIT investment, you can offset as much as the following amount from your salary on your income tax return:
$3,000. You can offset $3,000 in your earned income due to a REIT loss, as well as offset the loss against other securities' gains.
4.
One disadvantage of investing in a real estate investment trust is ______.
Low returns due to decreased mortgage interest rates. REITs that invest in mortgage loans can post poor performances following drops in interest rates.
5.
The number of mutual funds investing in REITs totals _______.
Close to 80. NAREIT's Website lists close to 80 mutual funds that invest in REITs.
