Funds, REITs or individual properties?

There are pros and cons to each, do you have a preference? What’s been your experience in researching or investing in these kinds of offerings?

  • Funds. Your investment is pooled with others into a fund that acquires multiple properties for rental income and/or appreciation
  • REITs. A special type of fund, REITs have specific tax advantages, and are a popular investment vehicle in commercial real estate. There are publicly traded REITs (available on the stock market), and in recent years, a number of online platforms have emerged offering REITs, such as Fundrise and RealtyMogul
  • Individual properties. With these investments, you’re investing (either alone or as part of a pool of investors) in a specific individual property. Depending on the investment type, you may receive regular cash flow (interest payments or rental income), as well as a share of the profits when the property is sold or refinanced.