How do RIETS work?

[Martin Hernandez]

Hello, I am Martin. I am new to the real estate world. Which brings me to my question. What are REITS??

To my basic understanding RIETS are like bonds that you invest in then slowly pay you back based on your initial investment? I know their are risks invlolved with any investment, but in which ways can someone lose more money than their initial investment? Also are you allowed to cash out at any time? And for the same price, or does the price go up like a stock??? 

Answers to any of my questions would be great. Thanks much in advance.

[Ryan Konen]

Hi Martin! Here's a breakdown to my best knowledge 

Real Estate Investment Trusts are companies that own, operate, or finance income-producing real estate. Investors buy shares and earn returns through dividends and potential stock price appreciation.

You typically can’t lose more than your initial investment with publicly traded REITs. Your loss is limited to the amount you invested.

You can sell shares of publicly traded reits on the stock market during trading hours. However, the price fluctuates like stocks, so you may sell for more or less than your purchase price.

REIT share prices can increase or decrease based on market demand, real estate trends, and the REIT's performance.