3 ms·

REITs are your friend.

• dagw 5y ago
  You can't get a mortgage to invest in REITs. Also you can't live in your REIT investment, so you still have to pay rent. Of course if you have an investment portfolio adding an RETI is probably a good idea, but it's not really comparable to investing in actual real estate.
  • twiddling 5y ago
    I can invest in a lot more rental markets and manage idiosyncratic risk. Plus I don't have to deal with maintenance issues with physical property upkeep. I have also invested in vehicles (private offerings) that fund residential construction especially in housing constrained markets. Very nice reliable returns
    • dagw 5y ago
      All this is assuming you have liquid funds to invest or have some other access to credit. The only realistic shot your "average joe" has at any sort of reasonable leverage is getting a mortgage and buying some property. Obviously if you're already rich then you have lots of better options to become even richer (like the ones you've mentioned), but they're not really open to your "average joe", if for no other reason than that most of them require you to be an accredited investor or require a high minimum investment.
  • mullingitover 5y ago
    Valid points, but also you don't have to pay maintenance expenses or property taxes on your REIT.