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So in reality it's no different then buying stocks?
You are buying stock in companies that primarily focus on owning real estate, such as apartment complexes, shopping malls, commercial high rises, etc. A lot of people can own an individual condo/duplex for rent, but most can't own a shopping center. REITs are one way to do that.
the problem is you are subject to the general stock market , earnings reports , short sellers , machine generated trading , management changes and all the things that effect a stocks price .
most of that price is based on market sentiment , and fear and greed .
that is not like owning brick and mortar directly .
even untraded reits can be awful .
some like one i owned used money that was supposed to buy more property as well as used borrowed money to prop up the dividend .
private reits are just about non transparent as to what is going on .
look up the history on say the apple hospitality reit when it was untraded .
so reits are no different then any other stock .
on a good down day , whatever the business is in to falls just the same , regardless of what the core business is in
I invested $25K through CrowdStreet 7 years ago in a mezzanine debt note. It has been paying 10% annual interest every quarter since then. At this point, the payments have almost equalled the initial investment, so I've almost doubled my money. Crowdstreet and the sponsor (Everwest) have both been communicating status and forecast regularly. Being a note (debt instrument) it is not really brick and mortar, so my risk is reduced slightly. Conversely, there's no chance for any upside, there's no appreciation like you get with an equity investment.
It may be a good strategy to invest the absolute minimum through one or more of the portals with long track records, but the risks are very high. You must accept that you may lose your entire investment, or not get any payments, or have your money tied up for a long time. Also look for sponsors with long and satisfactory track records.
I consider real estate essential to portfolio diversification. You must sacrifice liquidity when investing in real estate directly or in partnership. If you have any questions, PM me. I probably won't revisit this thread because of the thread-crapper who has already posted thrice.
Thank you all. Investing is foreign to me and I'm looking for something to fill in the spaces when I'm not busy with my small business. I have contemplated almost everything property related and honestly would love something where I could kind of pay and step back. My financial advisor told me what he has done...bought a few properties out of state and let a property management company take care of everything. I think for myself it's more mental because feeling like I'm not contributing to the household when business is slow.
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