THE FINANCIAL COMMUTE
Hosted by Wealth Advisor Chris Galeski, THE FINANCIAL COMMUTE is a weekly podcast that gives the rundown on what's going on in the current market, how it affects you, and what you can do about it – all designed to fit into your commute. Each week Chris welcomes an expert guest, including Morton Wealth advisors, fund managers, and investment analysts, to break down complex financial topics. Our goal for this podcast is to provide you with the tools to help you navigate this challenging environment, leading to a path of more confident investing.
THE FINANCIAL COMMUTE
Different Ways to Access Real Estate: REITs vs. Private Funds
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On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Kevin Rex to discuss different methods of investing in real estate.
Although being a landlord is a popular way to invest in real estate, Kevin says it requires consistent effort to resolve maintenance issues and handle difficult tenants. If an investor is interested in a more passive strategy, REITs (real estate investment trusts) and private funds are options to consider.
REITs are publicly traded equities, making them highly liquid. This allows for easy entry/exit, but also subjects the investment to the volatility of the stock market and interest rates. Private funds offer more control over investment type and require larger minimum commitments than REITs. These funds involve managers who are responsible for making strategic investment decisions and are generally less liquid. It is important for investors to understand the fund’s investment strategy, fee structures, and risks associated with the fund’s investment focus before committing.