What is one advantage of investing in a REIT?

Investing in a Real Estate Investment Trust (REIT) offers the advantage of liquidity, which is a significant benefit for investors. Since shares of publicly traded REITs are typically listed on major stock exchanges, investors can buy and sell their shares just like any other publicly traded stock. This easy access to trading enables investors to enter or exit their positions quickly, providing flexibility that is often not available in direct real estate investments, which usually require substantial capital and time to sell.

Moreover, the liquidity of REITs allows for better portfolio management and the ability to react to market conditions. This characteristic is particularly appealing to investors who value the ability to convert their investments into cash without encountering long delays or complications, which is a common issue in real estate transactions.