Being a property investor can be a great way to make money, as you have direct control over your investment but it actually takes a lot of work. You’ll have numerous tasks from researching the correct location and negotiating purchase price, to working out the financial costs, legal costs, brokerage etc., or if you are renting the property, finding the right tenant who will actually pay the rent without jeopardizing the property. These and countless other arduous tasks that need to be taken care of by property investors, else they will eat into their time, and if they’re not careful, their capital.
For everyday investors, investing directly in multiple residential or commercial properties isn’t always the best option. In fact, if you’re advising clients on how to diversify their portfolios with alternative assets that include real estate, Real Estate Investment Trusts (REIT) and real estate funds are good alternative investment channels that will allow their portfolios to be indirectly invested in property.