Series 7 Exam Prep 20, REITs and Real Estate Securities

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How Equity REITs generate income from property rents versus how Mortgage REITs earn income from interest on loans. - The 90% net investment income distribution rule that allows REITs to avoid corporate-level taxation. - The critical tax trap: REIT dividends are taxed as non-qualified ordinary income to the investor, not at lower qualified dividend rates. - The main risks for REITs, particularly interest-rate sensitivity for Mortgage REITs and general real estate market risk. - The key advantages of REITs over direct real estate ownership, which are liquidity and diversification. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep