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Updated about 2 years ago on . Most recent reply

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12
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3
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Tom Woythal
  • Specialist
  • Bradenton, FL
3
Votes |
12
Posts

How do REITs make money for their founders?

Tom Woythal
  • Specialist
  • Bradenton, FL
Posted

Hello, I am brand new in all this, and trying to learn the basics on some things. I have a question regarding REITs. From what I understand, equity REITs make money for their shareholders by paying out dividends on whatever the properties produce, and 90% of income must be paid out in dividends. My question is, how would someone who starts their own REIT be paid? Would it be based strictly on their ownership shares also? Or are there other benefits? What if someone were to depend solely on investment capital from other investors to start? Would they essentially be "bought out" before even getting started? I suspect that's probably the case, but just wanted to throw it out there. Thanks!

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