What Is a Reat?

A real estate investment trust is a type of fund, kind of like an exchange traded fund or a mutual fund. You can buy a general reat that covers a mishmash of all the different types of real estate. There are even timber land reeds, health care, self storage and on and on. The income coming off of reats, which can be substantial, is often at ordinary income tax rates. And i think the other thing is to just always keep in mind with this asset class is it can go through and downs. It's important to think about where you are in the economic cycle.