When it comes to commercial real estate investing, two terms that often sound similar but have distinct differences are REITs (Real Estate Investment Trusts) and REIT ETFs (Exchange-Traded Funds). In this article, we will delve into what sets them apart, their unique characteristics, and the advantages and disadvantages of investing in each.

Many owners of multifamily real estate are generational owners or beneficiaries who have no interest in further real estate management. Oftentimes, after a substantial period of ownership, owners have such a low basis in their property that nearly the entire portion of the sale is subject to either capital gains or depreciation recapture tax.