Myths about REITs
In addition to—and sometimes because of—the obstacles REITs have had to overcome, as just discussed, some REIT and real estate myths exist—myths that in the past scared off all but the bravest investors. Although these myths were based on misunderstandings of the investment characteristics of REITs, they discouraged many would-be investors. Let's confront a few of them.
Myth 1: REITs Are Packages of Real Estate Properties
This myth, which probably sprang from investors' experience with the ill-fated real estate limited partnerships of many years ago, was certainly a contributing factor to REITs' failure in the past to attract a substantial investor following. Although most of the earliest REITs really were, in many respects, ...
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