Believe It or Not, These REITs Pay You to Own Them
When most people think about investing in real estate, traditional assets like apartments, offices, and strip malls probably come to mind. But there are a host of other sectors that need specialized real estate to function, and in many cases there's a real estate investment trust (REIT) there to help. Here's why you might want to consider investing in cannabis, renewable power, and casino real estate via the REIT option.
Innovative Industrial Properties (NYSE: IIPR) fills an important niche in the cannabis sector. Although pot is increasingly being legalized across the U.S., it still isn't fully legal. And that makes it hard for traditional lenders, like banks, to enter the space. So Innovative Industrial uses its REIT structure to buy assets directly from growers and then lease them right back under long-term contracts. It's a win/win, with Innovative Industrial getting a reliable tenant for a niche asset and the seller getting cash it needs to keep growing its business.
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Source Fool.com
