Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Goals, Business Plans & Entities
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago,

User Stats

12
Posts
3
Votes
Tom Woythal
  • Specialist
  • Bradenton, FL
3
Votes |
12
Posts

How do REITs make money for their founders?

Tom Woythal
  • Specialist
  • Bradenton, FL
Posted

Hello, I am brand new in all this, and trying to learn the basics on some things. I have a question regarding REITs. From what I understand, equity REITs make money for their shareholders by paying out dividends on whatever the properties produce, and 90% of income must be paid out in dividends. My question is, how would someone who starts their own REIT be paid? Would it be based strictly on their ownership shares also? Or are there other benefits? What if someone were to depend solely on investment capital from other investors to start? Would they essentially be "bought out" before even getting started? I suspect that's probably the case, but just wanted to throw it out there. Thanks!

Loading replies...