does buying a REIT make sense?

It is a question asked of me and that I ask myself all the time. Some of the pros: REITs pay dividends, literally. CONS: most of the time you are only a partial owner, and the majority owners are the ones who are making the decisions. Mismanagement can bankrupt a REIT. You will not get the tax deduction advantages like you would if you were owner of the property. You are obligated to pay taxes on your dividends. Some of the cons for some may be pros for others. Some people prefer others to manage the properties and to simply collect dividends. Publicly traded REITs have paid between 1%-25%. REITs may be a great way to gain a partial ownership in real estate without having the day to day demands of management of real estate.