What type of real estate investment allows for shared ownership among multiple investors with specific regulations?

The correct answer is Real Estate Investment Trust (REIT) because it is structured specifically to allow multiple investors to pool their resources to invest in real estate. This investment vehicle operates under specific regulations, with most REITs required to distribute a significant portion of their taxable income in the form of dividends to shareholders. This shared ownership provides individuals with an opportunity to invest in real estate without having to manage properties directly.

The characteristics of REITs make them an attractive option for investors seeking exposure to real estate markets while benefiting from shared risks and returns. Additionally, they must follow regulatory requirements set forth by the Securities and Exchange Commission (SEC), thus ensuring a level of transparency and investor protection.

In contrast, condominiums, cooperatives, and time-shares each represent different forms of property ownership that do not primarily focus on shared investment in the same regulatory framework as REITs. A condominium typically involves individual ownership of a unit within a larger complex, a cooperative entails collective ownership and governance by its shareholders, and a time-share allows individuals to purchase usage time of a property rather than ownership of the property itself. These options offer unique benefits but do not encapsulate the broader investment approach and regulatory aspects found in REITs.