What is the typical minimum investment required to invest in a REIT?

The choice that indicates the typical minimum investment required to invest in a Real Estate Investment Trust (REIT) is based on several factors including the type of REIT and the investor’s method of purchasing shares. Generally, many publicly traded REITs can be accessed through brokerage accounts with minimum purchases starting at approximately $1,000 or more, making it achievable for individual investors. This investment amount allows a broader range of investors to participate in the real estate market through REITs since they offer a way to invest in real estate without requiring the substantial capital that direct property investment often demands.

While there are variations—some REITs may have lower entry points, such as starting at around $500, this is not universal and may not apply to all REITs. Furthermore, private REITs can have significantly higher minimums based on their individual funding structures. The notion of having no minimum investment does not align with typical practices, as most structured investment vehicles, including REITs, set minimum entry amounts to maintain investment standards and facilitate management. Therefore, the correct answer reflects a common benchmark in the industry for entry-level investment into REITs, catering to both novice and seasoned investors.