You can buy REITs through a brokerage account the same way you buy stocks

A REIT (Real Estate Investment Trust) is a company that owns and operates income-producing real estate. To buy one, you open a brokerage account, search for the REIT by name or ticker symbol, and place an order just as you would for any stock. Most REITs trade on major exchanges like the NYSE or NASDAQ during regular market hours. You do not need special permission, a real estate license, or a minimum investment beyond what your brokerage requires — often $0 to $500 to open an account.

The entire process typically takes 15 minutes to an hour once your account is funded. You can start with a single share if you want, though many investors buy multiple shares or use dollar-based orders. The price per share varies widely depending on the REIT; some trade under $20 per share, others over $100.

Key Takeaways

  • You need a brokerage account (through firms like Fidelity, Vanguard, Charles Schwab, or others) to buy REITs, and the process is identical to buying any stock.
  • REITs trade during regular stock market hours, so you can buy and sell them instantly at market prices, unlike owning physical property.
  • Most brokerages charge no commission to buy or sell REITs, though some may charge fees for certain account types or services.
  • You can hold REITs in a regular taxable account, an IRA, a 401(k), or other retirement accounts, depending on what your brokerage and employer offer.
  • REITs distribute most of their income as dividends, which are taxed as ordinary income in taxable accounts, so tax placement matters for long-term returns.

Opening a brokerage account

Start by choosing a brokerage firm. Common options include Fidelity, Vanguard, Charles Schwab, E-Trade, and TD Ameritrade, though many others exist. Each has slightly different fees, research tools, and account minimums. Most have no account minimum or charge $0 to open.

Go to the firm's website and click the button to open an account. You will provide your name, address, Social Security number, employment information, and banking details. The process is online and usually takes 10 to 15 minutes. Once you submit, the firm verifies your identity (typically within a few hours to a day) and your account is ready to use.

Next, fund your account by linking a bank account or transferring money from another brokerage. Most firms allow transfers within one to three business days. Some offer instant funding for smaller amounts. You do not need to fund the full amount you plan to invest at once — you can add money as you go.

Finding and researching a specific REIT

Once your account is open, log in and look for the search or quote tool. Type the REIT's name or ticker symbol (a four- or five-letter code like "O" for Realty Income or "VNQ" for a REIT index fund). The brokerage will show you the current price, trading volume, and basic information.

Before you buy, spend time reading about the REIT. Most brokerages provide fact sheets, historical price charts, and dividend history. Visit the REIT's own website to read their latest earnings reports and investor presentations. Look at what type of real estate they own — office buildings, apartments, warehouses, shopping centers, data centers — and whether that sector interests you. Check their dividend yield (annual dividend divided by share price) and whether they have raised or cut dividends over time.

Pay attention to the REIT's occupancy rate (the percentage of properties that are leased) and debt level. Higher occupancy and lower debt generally mean more stable income. If you are new to this, starting with a diversified REIT index fund or ETF (like VNQ or SCHH) is simpler than picking individual REITs, because you own hundreds of properties across many sectors at once.

Placing your first order

In your brokerage account, find the "Trade" or "Buy" section. Enter the REIT's ticker symbol, the number of shares you want to buy, and the order type. For most investors, a market order is the right choice — it buys at the current market price immediately. A limit order lets you set a maximum price you are willing to pay; the order only fills if the price drops to that level or lower.

Review the order summary: the ticker, number of shares, estimated cost (share price times number of shares), and any fees. Most brokerages charge no commission on stock or REIT trades, though some charge small fees for certain account types. Once you confirm, the order goes through instantly during market hours (9:30 a.m. to 4 p.m. Eastern time, Monday through Friday). If you place an order after market close or on a weekend, it will fill at the next market open.

After the order fills, the shares appear in your account within one business day. You now own a piece of the REIT and will receive dividends according to the company's payout schedule, usually quarterly.

Understanding REIT dividends and taxes

REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends. This is why REIT dividends are typically higher than stock dividends — often 3% to 6% per year, though it varies. Most REITs pay quarterly, meaning you receive four payments per year.

In a taxable brokerage account, REIT dividends are taxed as ordinary income at your regular tax rate, not at the lower capital gains rate. This makes REITs more tax-efficient in retirement accounts like IRAs or 401(k)s, where dividends grow tax-deferred. If you have a choice, hold REITs in a tax-advantaged account and hold stocks or bonds in your taxable account.

Your brokerage will send you a 1099-DIV form each January showing all dividends you received during the prior year. You report this on your tax return. If you reinvest dividends (many brokerages offer automatic dividend reinvestment, or DRIP), you still owe tax on the full dividend amount, even though you did not receive cash.

Choosing between individual REITs and REIT funds

You can buy shares of a single REIT company, or you can buy a REIT mutual fund or ETF that holds dozens or hundreds of REITs. Individual REITs let you focus on specific property types or companies you believe in, but they carry more risk if that company or sector struggles. REIT funds spread your money across many properties and sectors, reducing risk but also potentially lowering returns if one sector outperforms.

For most new investors, a REIT index fund or ETF is the simpler starting point. Examples include VNQ (Vanguard Real Estate ETF), SCHH (Schwab U.S. REIT ETF), and XLRE (Real Estate Select Sector SPDR Fund). These track the broad REIT market and charge low annual fees (typically 0.1% to 0.2% of your investment per year). You buy them the same way you buy individual REITs — just enter the ticker and place an order.

If you want to pick individual REITs, start by reading about a few companies in sectors that interest you. Many investors begin with well-known, stable REITs that have long histories of dividend payments before moving to smaller or more specialized ones.

Selling REITs when you decide to exit

Selling a REIT is as simple as buying one. Log into your brokerage, find the REIT in your holdings, and click "Sell." Enter the number of shares and choose a market or limit order. The order fills immediately during market hours, and the cash appears in your account within one business day.

When you sell, you may owe capital gains tax if the share price has risen since you bought it. If you held the REIT for more than one year, you pay long-term capital gains tax (usually lower than ordinary income tax). If you held it for one year or less, you pay short-term capital gains tax at your regular income tax rate. Your brokerage tracks your cost basis (what you paid) and will report the gain or loss on your tax forms.

There is no penalty for selling early, no lock-in period, and no transaction costs at most brokerages. This liquidity — the ability to turn your investment into cash quickly — is one of the main advantages of REITs over owning physical real estate.

Frequently Asked Questions

Do I need a lot of money to start buying REITs?

No. Most brokerages have no account minimum, and you can buy a single share of a REIT or REIT fund for as little as $20 to $100. Some brokerages also offer fractional shares, so you can invest any dollar amount, even $5 or $10. Start with whatever you can afford.

Can I hold REITs in a retirement account like an IRA or 401(k)?

Yes. REITs can be held in traditional IRAs, Roth IRAs, 401(k)s, and other retirement accounts. In fact, this is often the best place to hold them because REIT dividends are taxed as ordinary income, which is tax-deferred in retirement accounts. Check with your brokerage or employer plan to confirm which REITs are available in your specific account.

What is the difference between a REIT and a REIT ETF?

A REIT is a single company that owns real estate. A REIT ETF is a fund that holds many REIT companies. ETFs offer instant diversification and lower risk, while individual REITs let you focus on specific sectors or companies. Most beginners start with ETFs.

How often do REITs pay dividends?

Most REITs pay dividends quarterly, meaning four times per year. Some pay monthly or semi-annually. Check the REIT's website or your brokerage to see the payout schedule before you buy. You will receive your first dividend on the next scheduled payment date after you own the shares.

Can I lose money investing in REITs?

Yes. REIT share prices fluctuate based on market conditions, interest rates, and the real estate sector's performance. If you sell when the price is lower than what you paid, you lose money. However, if you hold long-term and reinvest dividends, historical data shows REITs have provided positive returns over decades. As with any investment, past performance does not may provide future results.