Two types of directive real estate investments
Define Equity Reit
A diversified pool consists of only Offices
REITs use rental income generated from properties to pay cash return to unit holders
Mortgage REITs Purchase existing mortgages or MBS (Revenues are generated by interested earned on loans)
REITs cannot provide a tax shelter as depreciation cannot be passed to investor
What is a subprime mortgage?
What are Mortgage Brokers for? Who pays them?