At some point in building a wealth portfolio you may come across the option of purchasing mortgage REITs. Mortgage REITs can be an extremely powerful investment in real estate. These are highly risky investments that can sometimes produce a significant return on your overall investment portfolio. However, how much risk are you actually willing to take to get rewards that may never come? When building your portfolio how smart is the choice of adding mortgage REITs? To answer this you must first understand not only the basics of what a mortgage REIT is but also what the hazards involved really are. Mortgage real estate investment trusts, or REITs, simply put are investments in residential mortgages that have been grouped together into a security known as a Mortgage Backed Security or MBS. The main difference between a regular REIT and a mortgage REIT is that a mortgage REIT owns no actual ......