Question

Which is better?

investing in single property or give to trustees or portfolio manager who is in multi-property investment?

Answer 1

One shall invest through trustees or portfolio managers through REITs of REOCs as they are liquid and also have investment in various real estate properties which provides diversification and reduces risk. They have advantage of pooling in funds and provide efficient and sustainaible diversified use of funds. Thus they provide returns with much smaller risks.

For example one shall invest in an income producing property as it will provide liquidity as well as lesser risk. For example investing in a housing compartment in a area where tennants are credit worthy and are established. This will lead to low credit risk as well as sustained income with high occupancy ratio.