Construction Loans for Real Estate Investors

D

Mortgage - these make construction loans to real estate investors.

Hybrid - these invest in both properties, construction and real estate mortgage loans.

The correct answer is D. Mortgage REIT's & Hybrid REIT's.

Real Estate Investment Trusts (REITs) are investment vehicles that pool funds from investors to invest in income-generating real estate properties. They offer a way for individuals to invest in real estate without directly owning the properties themselves. REITs are required by law to distribute a significant portion of their taxable income as dividends to shareholders.

Among the various types of REITs, there are three main categories: Equity REITs, Mortgage REITs, and Hybrid REITs.

1. Equity REITs: Equity REITs primarily invest in and own income-producing real estate properties. They generate income through rental income and capital appreciation of the properties they own. Equity REITs typically do not provide financing or loans to real estate investors.

2. Mortgage REITs: Mortgage REITs focus on providing financing or loans to real estate investors and operators. They originate or purchase real estate loans, primarily mortgage loans, and earn income from the interest on those loans. Mortgage REITs can invest in various types of real estate loans, including residential mortgages, commercial mortgages, and construction loans. In the context of the question, mortgage REITs are the type of REITs that make construction loans to real estate investors.

3. Hybrid REITs: Hybrid REITs are a combination of both equity and mortgage REITs. They invest in both real estate properties and real estate loans. Hybrid REITs may provide financing for real estate investors, including construction loans, while also owning income-generating properties.

Therefore, the correct answer is D. Mortgage REITs & Hybrid REITs, as both these types of REITs can make construction loans to real estate investors.