“You don’t have to collect rent checks or manage subcontractors, and you still own real estate. Maintaining a rental or preparing a house to flip takes a lot of work, says CEO of the Carlton James Group Simon Calton.
“Countless arduous tasks will eat into your time and, if you’re not careful, your capital,” he says.
By contrast, he considers REITs to be an “armchair” investment, as there are no management requirements and no surprise maintenance issues.
“REITs and real estate funds will often yield higher returns and have more security, but cost less and hold less risk for the investor than direct property investment,” he says.