I know what a REIT is. Maybe you could explain how rental income is spinning off... | Hacker News

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aguyfromnb on Feb 1, 2020 | parent | context | favorite | on: My Second Year as a Solo Developer

I know what a REIT is. Maybe you could explain how rental income is spinning off 15% cash a year? Do you think real estate is a magic industry that returns 15% annually, unabated? Why are these friendly real-estate developers sharing that money with you?

tempsy on Feb 1, 2020 [–]

That is just how REITs are structured. They are investment vehicles designed to pay out dividends to their investors that come from rental income.

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