Final answer:
In a REIT investment, you gain pass-through tax treatment, dividend income, and potential capital gains, but not management control of the property or portfolio.
Step-by-step explanation:
By investing in a Real Estate Investment Trust (REIT), you do receive pass-through tax treatment of income, capital gains, and potentially dividend income, as REITs are required to distribute at least 90% of their taxable income to their shareholders in the form of dividends. However, by investing in a REIT, you do not obtain management control. The options provided were:
- Liquidity risk
- Management control
- Dividend income
- Capital gains
While REITs provide the benefits of diversification in real estate without needing to directly invest in the property, they do come with liquidity risks, similar to other investable assets. Unlike direct investment in real estate, where the investor has control over their investment and property management decisions, REIT investors rely on the company's management team to make all operational decisions.