A REIT (pronounced REET), or real estate investment trust, is an entity that holds a portfolio of commercial real estate or real estate loans. Congress created REITs in 1960 to provide all investors, especially retail investors, with access to income-producing commercial real estate.
Investing in real estate is a proven wealth-creation strategy. Real estate investments can also help you diversify your portfolio and protect it from stock market volatility. Let’s look at the most popular options for investing in real estate, the pros and cons, and how you can get started.
We’ve seen some interesting times in the market lately, haven’t we? High interest rates, tariffs, inflation concerns, talk of potential slowdowns… it’s enough to make even seasoned investors a little nervous. While none of us has a crystal ball to predict exactly what’s next, we can be strategic about how we position our portfolios to weather potential storms. It’s not about timing the market perfectly, but about building resilience.
Done right, real estate investing can be lucrative, help diversify your existing investment portfolio — especially useful during a turbulent stock market, like the one we’ve seen in 2025 — and eventually provide a stream of passive income.