REIT can be a better way to go than a partnership if you have a whole bunch of friends who want a piece of action, and if the idea of the trust is not to just get a home and live in it, but get a rental house or an apartment building - something income producing. You form the trust and use everyone's money to buy something. You distribute the profits to all the investors. The benefits of the REIT are that: the trust doesn't have to pay taxes on the profits, only the investors do, just like in a partnership; and you can sell trust certificates to anyone cheap to raise more money.
www.sec.gov/answers/reits.html
www.sec.gov/answers/reits.html
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