Equity Help Desk

Real Estate Investment Trusts, REITs, are a form of business that sells stocks in order to invest in real estate. REITs were essentially what made Collateralized Debt Obligations (CDOs) possible. Before the most recent financial crises, REITs set the stage for the real estate market to boom. A couple years ago, REITs went through a boom/bust cycle. That is, the stocks increased remarkably in value within a short amount of time, then crashed horrifically and suddenly, exactly what happened in the most recent housing crises. However, in the boom cycle, real estate development went wild, and construction soared, leaving many pieces of real estate without owners. The boom/bust cycle was fueled by speculators, not actual business activity. However, this boom and bust cycle has passed, the financial housing crises has basically subsided, and the world/US economy is slowly working its way back to normal. In this article, I aim to