A real estate investment trust owns property, and many are listed on exchanges so shares can be bought and sold like stocks. U.S. REITs must pay out at least 90% of taxable income as dividends. Private real estate funds are not priced on an exchange.
What the video says
In real estate, you can own a slice of a hundred buildings, and sell it the same day. That's a REIT. A real estate investment trust. Many trade on stock exchanges, like any share. In the U.S., it must pay out at least ninety percent of its taxable income. Say it earns a hundred million. At least ninety goes to shareholders. A private real estate fund is different. It isn't priced on an exchange every day. And some of these trusts aren't listed at all. So why do investors care? Those same buildings can come with very different ways out. Same buildings. Different exits.
A simple example with round numbers, not advice. Terms vary by fund.
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