Distinguish between direct and indirect investments in real
estate.
Direct real estate investing involves buying a stake in a specific property. For equity investments, this means acquiring an ownership interest in an entity that directly owns an asset such as an apartment community, shopping center or office building. Indirect real estate investing typically involves buying shares in a fund or a publicly or privately held company. One of the common first steps for investors is to buy shares of non-traded or publicly-traded real estate investment trust (REIT) stocks. REITs are in the business of owning and managing portfolios of real estate properties.
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