4 thoughts on “REITS versus Direct Real Estate Ownership

  1. Thank you for the informative article. The take-home points for me are that direct ownership of real estate provides much less correlation to the stock market than REITs (good). On the other hand, direct ownership of real estate properties requires greater upfront cost and more active management (bad). As with anything in life, I guess you need to pick your poison.

    1. Well put, LiveFreeMD. I think the tax implications are also noteworthy and give another point for direct ownership. And like you are alluding to, there are usually pros and cons with any of our choices so we just have to make choices based on the best application for our own individual situation. Thanks for joining the discussion!

  2. Totally agree, I have invested in syndications for years, both local and small as well as large national PERE groups.
    I am not a fan of REIT’s, way too much correlation with the broad market for my comfort level. If you are going to own real estate then own real estate, don’t own a stock in real estate.
    Just my opinion.

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