Bob Fraser explains how public REITs raise equity, borrow money to buy real estate, and distribute at least 90% of earnings to investors. Private REITs work the same way but aren't publicly traded, while private syndications focus on a single property like an apartment complex.
A public REIT basically raises equity capital from investors. It invests in, basically buys real estate assets. It borrows money and sends the earnings to investors. At least 90%. Okay. So private REITs do exactly the same thing. They generally raise money from investors, they borrow money from capital sources, and then they buy assets and distribute the earnings to investors. So extremely similar. Okay. The only difference is they're not publicly traded and they're usually in LLCs. And then our third class is private syndications, which is generally a single asset. So, you know, company will go out to buy an apartment complex. They will find some equity for that. They will find some debt for that and then give the results to investors. But it's a single apartment complex.
