Financial Commute

Different Ways to Access Real Estate: REITs vs. Private Funds

January 30, 2024 Chris Galeski Season 1 Episode 70
Different Ways to Access Real Estate: REITs vs. Private Funds
Financial Commute
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Financial Commute
Different Ways to Access Real Estate: REITs vs. Private Funds
Jan 30, 2024 Season 1 Episode 70
Chris Galeski

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. 

Show Notes

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.