- 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.
Source: Seeking Alpha