What is a model for a real estate investment trust

1.Real estate, as real estate, is less liquid, and it is difficult for investors to exchange it for cash in the short term. When investors are in dire need of capital to liquidate their real estate, they often suffer losses. In contrast, real estate investment**.

It has strong liquidity, because most of the shares of industrial investment can be on the exchange like **.

Investors can quickly convert their holdings of real estate investment** assets into cash.

2.As the basis of real estate industry investment, real estate has strong value preservation and appreciation functions, which can well prevent inflation.

The loss to the asset owner, when the price continues, the value of the real estate property will follow. And, due to the non-renewable nature of the land, the value of real estate properties increases over time. The value of real estate investments, which are based on real estate properties, will also rise.

Therefore, real estate investment** is a good investment tool for value preservation.

3.Different investment projects.

The risks and expected annualized returns are different, and the risks of the investment can be controlled through an effective investment portfolio.

In the smallest range. Real Estate Investment** diversifies risk by investing funds in a variety of property types, effectively guaranteeing the efficiency of investors' asset portfolios. At the same time, due to the fact that it is invested and financed by professional personnel.

Overcome the limitations of personal finance expertise.

Expand your information; 1.Trust, also known as investment, is a collective investment method of "benefit sharing and risk sharing". It refers to the form of a contract or a company, with the help of the issuance of ** bonds, the unequal amount of funds of the majority of investors in the society are gathered to form a certain scale of trust assets, which are handed over to specialized investment institutions to diversify their investments according to the principle of asset portfolio, and the income obtained is 2

It is a collective investment trust system in which investors share according to the proportion of capital contribution and bear the corresponding risks.

Broadly speaking, ** is a general term for institutional investors, including trust investment**, unit trust**.

Provident Fund, Insurance, Retirement, Everything. In the existing market, including closed.

and open**, with profitable features and value-added potential. From an accounting perspective, ** refers to funds that have a specific purpose and purpose. Because the investors of ** and public institutions do not require investment returns and investment returns, but require the funds to be used for specified purposes in accordance with the law or the wishes of the investors, and ** is formed.

Real estate trust** is also known as a public offering**.

Need in the ** market.

Buying, that is, destroying the mountain, is to first open an account, then enter the trading system, click on the interface, and then select the relevant listed real estate trust according to the introduction, you can buy it in the trading system.

Real estate trust investment refers to the transformation of real estate, which is the financial transaction process of transforming low-liquidity, non-real estate investment into assets in the capital market. Real estate financing includes two basic forms: real estate project financing and real estate mortgage loans.

1. The significance of the development of real estate investment trusts.

The introduction of real estate investment trusts** in China has played a very important role.

First of all, the introduction of real estate investment trusts** is conducive to improving China's real estate financial structure. Real estate trust investment** participates in both the primary and secondary market financial activities of real estate in foreign countries, which is an important symbol of the development of real estate finance and an important means to promote the secondary market of real estate finance. Real estate trust investment** directly connects market capital to the real estate industry, which is a great supplement to indirect finance by means of banks.

Therefore, the launch of real estate investment trusts will greatly improve the completeness of real estate finance, and it is an inevitable choice for real estate finance to mature.

Second, the introduction of real estate investment trusts** can help diversify and reduce systemic risks and improve financial security. From the perspective of real estate finance, the introduction of real estate trusts with market credit characteristics will improve the ability of real estate finance to resolve systemic risks in the current period and improve the security of the financial system to a certain extent.

Thirdly, the introduction of real estate investment trusts** will help unblock the circulation of real estate funds. The introduction of real estate investment trusts** can avoid the hard impact of bank-related policies on the real estate market under the single financing system, and alleviate the overall impact of some specific purpose policies on the entire market, which will help alleviate the mismatch contradiction in China's financial system. The inherent characteristics of real estate determine that real estate investment trusts have the function of maintaining and increasing value, so the income of real estate investment is relatively stable.

2. What is a real estate investment trust**.

Real Estate Investment Trusts**Real estate investment trusts (REITs) were originally defined as unincorporated organizations with multiple trustees acting as managers and holding convertible income shares. As a result, REITs are defined as closed-end investments that exclusively hold real estate, mortgage-related assets, or both**.

Answer]: cAccording to the type of business model of real estate development and operation enterprises, the real estate investment business can be divided into basic modes such as "development-sales", "development-holding-renting-**", "buying-holding-renting-**", "purchasing-renovating-rental-leasing-**". The "buy-hold-rent-**" model refers to the purchase of newly built income-making real estate by real estate enterprises, and then holding and renting out the property in Hail Town, and reselling the property at some point in the future.

This model is commonly used by large real estate companies, but it is also commonly used by real estate investment trusts**.

Real estate is an investment that invests primarily in real estate or is issued by a real estate mortgage company. Real estate trust is a trust investment company that gives full play to its professional financial management advantages and raises funds through the implementation of a trust plan. It is used for real estate development projects to obtain certain income for the client.

The difference is that it is invested in, which is equivalent to investing in virtual industrial capital, and it is actually an investment in the capital market.

The trust is engaged in industrial development, and the funds may be involved in a certain project, not just shares, but may be involved in specific matters.

A real estate trust is a trust company as a financial institution that raises funds from qualified investors to finance qualified real estate developers, and the funds are generally used as funds for real estate projects of real estate developers. The threshold is generally RMB 1 million, generally for a fixed period of 12-24 months, and the return of qualified investors is generally fixed at an expected annualized rate of 7-13%. Funds and income shall be paid according to the trust agreement.

It can be understood that the trust company, as a financing platform, connects the financier and the project financier, and the project involved is generally in the early stage, and after the 4 certificates are complete, it can generally only do the same project with the same company. A plate is smaller, usually between 6k trillion-300 million. At present, a lot has been done in China.

Real estate investment trusts**, also known as REITs, the threshold is generally more than 10 million yuan or higher, the term is longer than that of real estate trusts, there are 3-5 years, and the plate is generally larger, with billions of billions. Generally, there is a fixed expected rate of return, usually IRR. The funds are large real estate investment institutions, which invest in various real estate projects through the issuance of trust companies, and can invest in N projects of different companies.

At present, there are relatively few in the country.

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The two are not the same concept. The analysis is as follows:

1. Real estate is the same as two major investment fields.

2. No matter what the investment field is, there are three main forms of private placement:

a. Company system.

b. Trust system (contract system).

c. Limited partnership.

Private Trust Investment** is the second type described above. Therefore, a private REIT investment is a type of private real estate investment. Note that the trust investment here is preceded by the word "private placement".

3. In addition to private placements, there are many trusts that are publicly offered, and at present, the public offerings and investments on the field are all trusts, so theoretically, there are also public real estate trust investments.

Therefore, although there is an intersection between real estate trust investment and private real estate investment, it is not the same concept:

The latter includes private trust investment**, private equity company system** and private limited partnership**;

The former includes both private trust investment** and public trust investment**.

The former is a form of classification from the way of organization, and the latter is a form of classification from the way of recruitment.

1. The nature is different.

REITs generally refer to real estate trust investment, which is an important means of real estate investment.

Real estate investment** is a collective investment system engaged in the acquisition, development, management, operation and marketing of real estate to obtain income.

2. The requirements are different.

Real estate private equity** is not public, and there are strict restrictions on investors, such as high asset requirements, a minimum investment of one million, and an investment period of several years.

The threshold for REITs is correspondingly much lower, and they are open to the public, some starting from a few thousand yuan.

3. The relationship is different.

Real estate private equity** is an equity relationship.

REIT investment** is a fiduciary relationship.

Not a concept.

The investment targets are the same, both in the field of investment and real estate.

But the subject of product issuance is different.

In China, the foundation of real estate trust investment is the trust plan, and the investment direction is real estate. The establishment of the trust plan is based on the Trust Law, and the trust company is the trustee, which may be actively managed, or it may be actively managed by real estate developers, and the trust company is supervised. Domestic real estate trusts** generally borrow the credit of large real estate enterprises to raise a small treasury with no guarantee and no collateral and no restriction on the investment of funds, which is used by the real estate enterprise that issued the guarantee.

Because the China Banking Regulatory Commission requires the trust plan to be rigidly paid, basically only the top 100 real estate companies can be accepted by the trust company to raise real estate trust investment**.

Private real estate investment** generally exists in the form of a limited partnership, and its management team may be a limited liability company as the GP, or it may also be a limited partnership as the GP, and the GP manages the funds and collects management fees and excess return commissions. LP (Limited Partner) receives an agreed percentage of income.

If you want to ask about the difference, if you can make it clear what it is, you can also ask me.