Investment in real estate can be a strong addition to your investment portfolio and can improve its diversification.
There are two main approaches to investing in real estate: investing directly in individual properties, or investing in Real Estate Investment Trusts (REITs). Over the past few years, an increasingly larger percentage of investors hold some form of real estate in their portfolios.
Direct Real Estate Investing
The traditional form of real estate investment is to buy properties directly and then manage them as a landlord, or flip them after making improvements.
Properties can be residential or commercial and can include single-family homes, multi-family homes, condos, commercial property, storage units, office buildings, warehouses, and raw land for future development.
Pros of Direct Investing
Cons of Direct Real Estate Investing
Investing inREITs
A REIT allows you to add real estate to your portfolio without having to buy, manage or directly assume ownership of a property.
A REIT is a unitized fund of real estate investments, much like a mutual fund. A REIT can hold hundreds or even thousands of properties.
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Pros of Investing inREITs
Cons of Investing in Real EstateTrust
Which is Best forYou?
Direct investing or investing in REITs? The answer depends on the individual. REITs offer investors a hands-off way to invest in real estate and may be preferable for many investors as it provides real estate exposure without being tied to the day-to-day issues that can arise when holding an actual piece of real estate.
Direct real estate investments are more expensive up front but give investors more control.
You should consider working with a qualified financial professional to help you determine how to best invest in real estate as part of your overall investment portfolio.
Investing in REITs with Bloom Investment Counsel,Inc.
Established in 1985, Bloom Investment Counsel, Inc. provides actively managed, customized investment management services to wealthy individuals, family offices, foundations, trusts, institutions and corporations.
For over twenty-five years we have specialized in investing in dividend-paying equities including REITs. To learn more about how we can help protect, preserve and build your wealth with a diversified portfolios comprised of REITs and other dividend-paying equities, please contact us at 416–861–9941 or [email protected].
This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circ*mstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.