I think item (3) is the key here. When investing in RealCrowd, you are choosing a single property in which to invest. In REITs, you are investing in a managem

I think item (3) is the key here. When investing in RealCrowd, you are choosing a single property in which to invest. In REITs, you are investing in a management team which will use your money to trade in and out of many different properties. The "manager" of the RealCrowd LLC's has one job, to maintain and manage a singe piece of property and the business structure. The manager of a REIT is also responsible for choosing when, how, and where to invest the money in the found. This additional responsibility is the "whim" in which they are referring. As you said, one is not better than the other. You may be better able to deploy a small amount of capital into a limited number of deals. Or, a professional manager managing millions or billions of dollars may be better able to find profitable real estate investment. Options are almost always good.