How do Real Estate Partnerships compare to REITs (Real Estate Investment Trusts)?
Both Real Estate Partnerships and REITs are companies dedicated to owning and operating income-producing real estate, such as warehouses, industrial buildings, shopping centers, and offices. Both enterprises are geared towards the production of income through commercial real estate ownership and finance. However, REITs are generally owned and managed by large companies. They were created by Congress to enable small investors to make investments in large-scale, income-producing real estate. They tend to hold a large number of properties, so they are bigger in total fund size. Additionally, the minimum investment of a REIT is usually lower than Real Estate Equity Partnerships, and the investment is liquid. Similar to mutual fund investments, REIT shares can be sold on any day that the securities markets are open for business. A major difference between REITs and Real Estate Partnerships is the level of participation of the principals of the transaction. Managers of a REIT typically own l
