How to Invest in Timber REITs
When most investors think of real estate investment trusts, or REITs, they think of companies that own buildings. For example, the best-known REITs own malls, hotels, offices, hospitals, apartments, and self-storage buildings, among other property types.
However, there are some REITs that own land, not buildings. Timber REITs are in this category. They own land and make their money primarily from harvesting the trees that grow on their land and selling wood and related products.
Timber REITs can make excellent long-term investments. However, since they make their money in a somewhat different way than most other REITs, it's a good idea to learn exactly what you're getting into before considering an investment. With that in mind, here's a rundown of what you should know before buying a timber, or timberland REIT, as well as an overview of the publicly traded timberland REITs you could invest in.
Source Fool.com
