REITs are great...
But have you met REIPs!?
Thanks to advances in technology, real estate is now accessible to everyone through Real Estate Investment Platforms – also known as “REIPs”.
Real Estate Investment Trusts (REITs) Vs. SmartCrowd
REITs are similar to funds. The institution performs its due diligence and selects properties on your behalf. REIPs, however, allow you to choose from pre-vetted properties listed on the platform.
REITs tend to have high management, transaction, and performance fees that can take a sizable chunk of your invested capital and overall returns. REIPs tend to have a different transparent cost structure and could vary, but generally cost less than REITs.
REIPs allow you to own fractional shares in multiple properties via a crowdfunding model. REITs let you invest in a trust, which usually owns thousands of properties across different classes (commercial, residential, etc)– so there’s no real customization and you are reliant on the trust’s portfolio to perform well.
When you’re investing with a REIP, you don’t need to have the expertise or resources to invest in the real estate market. When investing with a REIT, it usually also comes with an expert opinion to help you make investment decisions.