Mortgage REITs or mREITs allow you to invest in mortgages and mortgage-backed securities.
A real estate investment trust, or REIT, is a special type of corporation. Its primary business is investing in real estate and related assets. To be classified as a REIT, a corporation needs to meet a few basic criteria. REITs must
- invest at least 75% of assets into real estate or related assets,
- derive at least 75% of their income from real estate sources,
- have at least 100 shareholders,
- be no more than 50% owned by five shareholders, and
- pay out at least 90% of their taxable income to shareholders as dividends.
If it meets these requirements and a few more, a REIT enjoys a nice tax advantage: It pays zero corporate tax on its profits. REITs are pass-through entities, similar in tax treatment to a partnership or LLC.
With most dividend-paying stocks, profits are effectively taxed twice. Once when they are earned (corporate tax), and again when they’re paid out to shareholders (dividend tax). REIT profits are only taxed on the individual level. And if they’re held in a tax-advantaged retirement account, investors don’t have to worry about paying taxes on their dividends at all.
What is a mortgage REIT?
When it comes to REITs, there are two main categories — equity REITs and mortgage REITs (also known as mREITs). Equity REITs are what most people think of when they hear the term “real estate investment trust.” These companies own, manage, and develop commercial properties.
Mortgage REITs invest in mortgages, mortgage-backed securities, and related assets. According to Nareit, mortgage REITs help finance 1.8 million homes in the United States. As you might imagine, this is quite a different business than owning properties. In fact, mortgage REITs aren’t even classified in the real estate sector — they’re considered financial stocks.
7¢ Skip Tracing – Guaranteed lowest price on the market for the best quality data.
Don’t just take our word for it. Try us out by running a small list first to see the tier 1 data for yourself. We are offering non-members access to member pricing, so you can experience the Skip Force Difference and improve the quality of your lists.
Pay wholesale price for quality data
Receive the TOP 3 Phone Numbers
Discover which phone numbers are best
Learn the BEST Time to reach a contact
We can take your old list, grade it and come up with the
BEST NUMBERS to contact
Develop a SNIPER MARKETING Plan
Increase ROI and TEAM MORALE
We have extended this special but cannot afford to keep this offer running for long.
Have Questions? Reach out to us, we’re here to help.
Call us at: 866-962-8190
Get Started Now
Related News
💥Real Estate Strategy 2 Years Into The Pandemic💥 Real Estate Strategy 2 Years Into The Pandemic – COVID-19 has changed the world as we know it. Everything from where we live and work to how we value and spend our time and interact with each other has dramatically shifted in the face of the challenges […]
Simple App Makes Real Estate Investing Less Confusing Simple App Makes Real Estate Investing Less Confusing – Many seem to be under the belief that real estate investing is only a game rich people play. It takes a lot of money to buy a single piece of property, after all. It’s also a relatively slow […]
Invest in Real Estate Without Owning a Single Property Invest in Real Estate Without Owning a Single Property – This REIT nears a quarter century of market-beating returns, and that could be just the start. Real estate has long been a great way for investors to build wealth. That wealth can come both from the […]