As a former private equity real estate investor who later turned to REIT investing, I understand the pros and cons of both approaches.
Rental investors will argue that REITs are…
- Volatile
- Managed to enrich the managers
- “Not Real Estate”
And REITs investors would reply that Rental investments are…
- Illiquid
- Concentrated
- “A hassle to manage”
Both, rentals and REITs are the most popular approaches to real estate investing for individual investors. They can both work very well and which strategy to follow mostly depends on your personal objectives, risk tolerance, and circumstances.
I have long