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Why REITs are much safer than rental properties

Why REITs are much safer than rental properties

    Summary

    • A lot of investors believe that REITs are riskier than rental properties.
    • But once you dig into the fundamentals, you find that the opposite is true.
    • REITs are diversified, conservatively financed, liquid, professionally managed, and offer limited liability.
    • Rentals are concentrated, heavily leveraged, illiquid, management intensive, and put you at liability risk.
    • REITs are not only safer, but they are also more rewarding in the long run.

    Here are 6 reasons the writer believes that rental properties are by far the riskier investments

    Source: Seeking Alpha