| Real estate has always been a popular investment as | | | | There is lower leverage with a REIT which will yield a |
| it has stood the test of time. When the market | | | | lower return on your investment. However, with |
| crashed, it opened up another door which is the | | | | rental properties, there is a certain amount of control |
| foreclosure market for investors. | | | | that you delegate to the property management that |
| The amount that you should invest in property may | | | | also creates some risk. It is known that REIT's are |
| be viewed differently among investment brokers; | | | | slightly safer than involvement yourself directly in |
| however all will agree that a portion of your | | | | investing in rental property; but one of the |
| retirement portfolio should be invested in the real | | | | advantages of owning real estate directly is you are |
| estate market and more importantly a respected | | | | in total control. |
| REIT fund. Others may direct you toward rental | | | | With a REIT mutual fund, you will not have the |
| properties, so it all depends on which investment will | | | | control, so it really depends on how much |
| yield you the best return at the lowest risk. Another | | | | involvement you want in your investment and how |
| alternative may be a REIT mutual fund which some | | | | much of a return you are looking for. It all depends |
| say is safer than owning and managing property on | | | | on what you are looking to do and how much |
| your own. | | | | involvement you want. Both REIT mutual funds and |
| Owning rental properties can present some | | | | owning real estate and managing it directly have their |
| challenges. Typically when you are an investor, a | | | | advantages and disadvantages. |
| property manager is well worth the money if you | | | | However, real estate is an investment that you |
| can find one that will take care of business. | | | | should participate in one way or another. |