What is an eREIT?
What is an eREIT?
An eREIT, or electronic Real Estate Investment Trust, is a type of real estate investment trust (REIT) that is offered directly to investors over the internet, bypassing traditional investment brokers. eREITs are designed to make real estate investment more accessible by lowering the costs associated with purchasing shares in a REIT, which typically invests in income-generating real estate assets. Investors in eREITs benefit from receiving dividends generated from the rental income and property sales within the REIT’s portfolio.
These investments are structured to provide liquidity options that are more flexible than those of traditional REITs, although they may still be subject to holding periods and other restrictions. Platforms like Fundrise popularized eREITs, making them available to non-accredited investors with relatively low minimum investment requirements.