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Property Value

Want to be a land baron but don't have the cash? Check out a real estate investment fund.

This story appears in the May 1998 issue of Entrepreneur. Subscribe »

If you fancy the idea of owning property but don't have the cash to buy it, a real estate fund may be what you've been looking for. Real estate funds have been growing in popularity over the past few years. One of the reasons these income-producing funds have enjoyed a shareholder increase is that most invest in equity Real Estate Investment Trusts (REITs).

An equity REIT is a stock that must pay out 95 percent of its taxable income as dividends if it's to enjoy a tax-advantaged status. What REIT companies typically do is own and manage a portfolio of income-producing real estate. One REIT might own apartment complexes in the Southwest; another could specialize in owning hotels nationwide.

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