REITs vs. Direct Ownership: Which Strategy Wins?

Introduction

Real estate investment comes in many forms, but two stand out: direct ownership of property and Real Estate Investment Trusts (REITs). Both provide opportunities for income and appreciation—but they operate very differently.

If you’re debating whether to buy a duplex or invest in a REIT, this guide breaks down which strategy might win for your goals.

What Are REITs?

• Publicly traded companies that own/manage income-producing real estate.

• Investors buy shares like stock.

• Dividends are paid from rental income and property profits.

Pros: Highly liquid, diversified, professional management.
Cons: No control, subject to stock market volatility.

What Is Direct Ownership?

• Purchasing property yourself—single-family rentals, multifamily, commercial.

• You control the asset and operations.

Pros: Full control, leverage opportunities, tax benefits.
Cons: Requires capital, active management, higher risk exposure.

Side-by-Side Comparison

Which Wins?

• Busy professionals → REITs for passive exposure.

• Hands-on investors → Direct ownership for higher returns and control.

• Balanced portfolios → A mix of both.

Call to Action

Want a blend of hands-on investing and passive income? Contact us to explore direct property deals and REIT allocations that fit your portfolio.