More reasons REITs are popular:

• REITs are very popular for IRAs and Keogh plans. The money placed in these retirement accounts can be invested in REITs and earn attractive tax-deferred returns.
• Since REITs pay no income tax, investments in REITs generally pay higher returns than corporate dividends.
• REITs are relatively liquid investments, which can be traded much like stock investments. REITs are therefore an easy way of making a liquid investment in an liquid asset: real estate.
• Finally, REITs eliminate the need to put up the large amounts of capital normally required for real estate, by allowing investors to participate with relatively small amounts of capital.

Most REITs resemble closed-end mutual funds: after the initial funding, the shares of stock in a REIT usually trade on a stock exchange. Factors influencing publicly-traded REIT share prices include dividend rates, appreciation potential and overall stock market sentiment.