REITs Vs. Real Estate Crowdfunding

Either one is worse than directly buying and owning. Most straightforward. Unless you are buying REIT that invests in say office buildings that are beyond the means of most retail investors, why bother?

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Real estate crowd funding has liquidity issue, you share a part, hard to sell profitably.

REITs returns will be down with growing interest rate. Most of the REITs are having term loan instead of fixed loan. Second, many REITs are engaged in MBS or RMBS funding. Return are risky with default risk, esp growing interest rate env.

We need to be careful in choosing REITs like OHI, MPW…

Better is individual purchases, tough to get deals, contracts and finances…

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Also with REIT you are paying management’s nice salary and bonus. At least with your own property manager you have a say in what’s fixed and how. With REIT small investors just constantly get fleeced.