What is the primary goal of a REIT?

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The primary goal of a Real Estate Investment Trust (REIT) is indeed to influence small investors to combine their resources to invest in real estate ventures. REITs are designed to provide individuals with the opportunity to invest in large-scale, income-producing real estate without having to buy or manage properties directly. By pooling funds from many investors, a REIT can acquire and manage a diversified portfolio of properties, offering benefits such as liquidity, professional management, and access to unique investment opportunities that might be otherwise unattainable for individual investors.

This structure allows smaller investors to participate in the real estate market and benefit from the income generated by property investments, such as rent and capital appreciation. Thus, the collective investment through REITs democratizes real estate investment for those who might not have sufficient capital to invest independently.

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