According to Financial Planner Martin Lader, CFS, real estate investment trusts, known as REITs, allow investors to place money in the real estate market without actually purchasing property.

REITs are corporations that own apartments, office buildings and hotels. These corporations distribute at least 95% of net income to shareholders as dividends, which allows them to avoid having to pay corporate income tax. You can spread money over a number of different REITs by investing in REIT mutual funds. These funds effectively spread your investment over several different real estate sectors and regions.