REIT Investing vs. Direct Real Estate Investment: Which is Right for You?
Though the ways of investing have changed, real estate has always been a common path for wealth growth. Direct real estate investment and REIT, or Real Estate Investment Trust, investing are two main choices. Everyone has different benefits and drawbacks; the correct one will rely on your preferences, risk tolerance, and financial objectives. To help you decide which is best for you, this page explores the variations between direct real estate investment and REIT investing . Know REIT Investing What is a REIT? A Real Estate Investment Trust (REIT) is a firm either owning, running, or funding income-producing real estate. REIT types: Equity REITs: Own and run income-producing real estate. Mortgage REITs: Purchase or origin mortgages and mortgage-backed securities to finance income-producing real estate. Hybrid REITs: Combine the mortgage REIT and equity investment approaches in hybrid REITs. Benefits of REIT Investing Liquidity: REITs are more liquid than direct real estate invest...