Monday, September 7, 2015

Should You Buy an Investment Property or Invest in a REIT?

How do you decide if you want to be a landlord or not? Well, there are several things to consider...first of all, how active do you want to be in your investments? How active should you be in your investments? If it's not your full time job, you still need to pay attention to your investments. This includes your stocks, bonds, retirement accounts, real estate investments, etc, where ever your money is kept. If you don't pay attention to it, who will? If it's not your full time job, even more reason for you to check in. This can be weekly, monthly or daily depending on what vehicle(s) you invest your money into. I have a third party property management company handle my rentals and I check in with them at least once a month. In addition, I review the #'s every month to make sure we are on track with rents and renewals. You may need to do this more or less depending on your preference, number of rentals and if you use a property management company or not. For the stocks that I actively trade, I check on daily. I also spend a few hours every month on my asset allocation and overall performance.

So, what does this mean to you? You need to do what is best for you. How much time do you have to devote to your investments? Do you want to add real estate to your investment portfolio? According to Barron's recent article, "The Allure of Mortgage REITS" by Amey Stone some REITS are paying up to 12% annual yields and the are on sale right now for deep discounts. So, this begs the question, if you can get 12% returns with little or no time investment, why would you build your own real estate portfolio?

A REIT can offer you a (hopefully) diverse portfolio. This can be across property types such as commercial or residential single family homes or multi family. Or  it could be spread among properties in various markets across the country. Some REITS are traded like stocks, some require a minimum investment and can be difficult to get out of, so do your homework.

If you buy your own real estate investment properties you have a few models to choose and hold, fix and flip or a combination there of. Things to consider include available cash, available time, access to general contractors and  construction teams (if you are considering fix & flip), opportunity to leverage, return on investment goals and much, much more. You can start with one rental or 2nd home that you rent out when you're not using it, see if you have a taste for being a landlord and go from there.

I don't suggest you jump into either real estate investing or a REIT without doing your homework. Real estate can be an amazing investment and it's not for the faint of heart.I hope you find this information thought provoking. If you have questions email me at

Grab our new kindle version of my #1 Best Seller on Amazon.

For more mortgage tips check out our website
For video mortgage tips and tools subscribe to our YouTube
For sponsorship opportunities go to:



  1. Are you finding best home Loan in India Compare & check the latest offers with top banks with Antworksmoney

  2. You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this... buy aged LinkedIn accounts

  3. I'm  here to share my testimony of what a good trusted loan company did for me. My name is Nikita Tanya, from Russian and I’m a lovely mother of 3 kids I lost my funds on trying to get a loan it was so hard for me and my children, I went online to seek for a loan assistance  all hope was lost until one faithful day when I met this friend of mine who recently secured a loan from Le_Meridian Funding Service She introduced me to this honest loan company who helped me get a loan in within 5 working days, I will forever be grateful to Mr Benjamin, for helping me get back on feet again. You can contact Mr Benjamin via email:, they do not know I’m doing this for them, but i just have to do it because a lot of people are out there who are in need of a loan assistance  please come to this company and be saved.WhatsApp:(+1 989-394-3740)

  4. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Buy Old LinkedIn LinkedIn With Real Connections
Buy Verified LinkedIn Accounts

  5. You started your content really with an awesome and thoughtful question. Yeah, we should keep some consideration before initiate to buy or invest in any industry. Though property or real estate world now very active with their modern developing approach, the question is how you find the perfect one for taking care of your financial or property. If you are from Fresno, Ca, Utopia Management Fresno might be a place to keep in your track.