REITs vs Rents: Five reasons rental properties are better than REITs

Join Ken as he breaks down the 5 reasons he thinks that rental properties are better than REITs.

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Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and most recently his book on entrepreneurship: The Sleeping Giant. Ken is a Rich Dad Advisor.

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If you are interested in this topic you can find more information out at the links below.

REITs vs. rents. Young Juan calls in from the Caribbean to ask Dave's opinion of real estate investment trusts compared to actually owning rental property

Jul 19, 2017 - These trends show us that investing in real estate, and more specifically, owning income-producing rental properties, continues to be a good ...

You can also set rental prices, choose tenants, and decide how many properties to buy. Cons of Direct Real Estate Investing. One of the main disadvantages of ...

May 4, 2019 - Rental vs. REITs: Income Return. The comparison of the income return component is more complicated because: REITs will generally invest in ...

#RealEstateInvestment #Cashflow #FinancialSecurity

[davidbrooks]

Reits are better for busy people like me.. I'm not lazy I work 50 hours a week and I also have a family

[tusharprasad]

It would be disastrous for an active real estate person to admit that REITs are better, just like mutual fund managers who can never beat index funds always preach that managed funds will have better yields 😏

[dustywilson]

I love REITs especially for their lower barrier to entry, and their liquidity.

[dianadorantes]

Love my rentals! Lots of benefits. Thanks Ken for your information. Continue to learn from your knowledge.

[jefferyanielson]

Ken, I understand the idea of education, control, and tax deductions being positives for direct investment in real estate. How would you respond to concerns about liquidity, diversification risk, and ROI?

[dustywilson]

Does a REIT's stock price not increase with the appreciation of the property(s) represented by the REIT ?

[keithjonesiii]

I completely agree with what your saying I’m glad I watched your video before purchasing a REIT

[Endeavor]

I certainly agree with you Ken! I can tell you that for the past year I have been learning from my mentors and I have learned that just strait renting property, is not the best Avenue to go down. Lease purchase and owner financing is though! Because of the maintenance!

[letsthinknbuild]

Uff thanks Ken, I thought REITS were better but rental is much more better, thanks

[SkunkRadio]

Personally, I would say start with reits as it is more affordable to get into, then gradually funnel capital gains into gold and silver so you can invest in both. With reits you can also hedge your realty location risk bets with reits that purchase property globally. Don’t forget to diversify, but also take a handful of well researched companies during your life, invest in them more heavily as a one off, a little more of a gamble per say, you might get lucky with a truly life changing return.

[mnrois]

Thanks Ken! Your insights are valuable.

[IndieBassJA]

It doesn't take me much to subscribe to someone's opinions, and Ken's explanation of REITs vs Rentals sounds like it's coming from years of experience. Awesome videos.

[simonforall]

Always fresh and on time. I hope one day we can talk mentor!!!

[frankayala]

Thank you for the education. I'm wondering how much $ would ir take to REIT? Going to research more...

[muttley]

Should differentiate between private vs publicly traded. I agree private REITs too risky, no control. Depending on your situation, REITs for someone with an 8-5 job, publicly traded REITs are better then rental. Highly liquid and can buy and hold with not much attention. Thanks for all your great content.

[TrollingRyko]

I plan on buying a multi-family property and renting out the units to make cash flow. Any thoughts the DFW market?

[dashman]

I have a question: lets say you have 20k, would you make more cashflow upfront by putting a down payment on a 100k property? Or put it it all in a reit? Personally I've been focusing on reits cuz I don't make much money and physical real estate is really really expensive where I live. However I do hope to someday buy a physical piece of real estate.

[rutan]

I think this video is very country dependent. If you're in a country like Singapore where most rentals are 99-year lease, points 4 and 5 becomes moot. A high barrier to entry on something you don't even own and whose value drops 50% after 40 years is just dumb. Also, for us here, point 2 is unrelated since we do not get taxed on dividends. Hence this video probably only works in the states or in countries where points 2, 4 and 5 are valid.

[hw]

Come to this side of the globe. Over here, loads of untenanted condominums . Every condo development has appx 30% untenanted. Loads of great new landed housing property deveoplment, but no tenants. Over build. Some China development co. came and build somemore, still no tenants. They had to stop building now and pack up. I myself is a motivated seller. Been trying to liquidate for past 3 years now, and still waiting.

[simonforall]

In Reits you don't know exactly what are the profits