Term: Real Estate Investment Trusts (REITs)

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An entity that operates, finances, or owns income-producing real estate, providing individual investors an opportunity to earn a share of the income without having to finance or manage the properties directly. REITs must meet certain testing obligations to qualify. These qualifications are set forth by the IRS in 26 U.S. Code S856, et. al

Articles relating to Real Estate Investment Trusts (REITS):

3 Major Issues REITs Can Create and How to Avoid Them

Real Estate Investment Trusts (REITs) have gained significant traction in private lending for debt funds since 2017. With its attractive features like 20% tax savings, UBTI blocking, and state withholding …

Meeting the REIT 100 Investor Test

In the world of private lending, creating a Real Estate Investment Trust (REIT) can offer numerous advantages. However, one of the key requirements to maintain REIT status is to have …

Decision Making with REITs in Light of the 199A Sunset Provision

Since the passage of the Tax Cuts and Jobs Act (TCJA) during the Trump Administration, the Section 199A QBI deduction has been a boon to debt funds and small businesses …

Mythbusting: Common Myths Regarding Mortgage REITs for Private Lenders

Since 2018, mortgage REITs have become an immensely popular strategy for funds in the private lending space. The primary reason for this is the 20% Qualified Business Income deduction granted …