Direct or Indirect Investing: Real Estate Investment Types
Direct investing means buying a stake in a specific property, which can be a single asset or a portfolio of assets.
A single real estate asset is defined as a single property excluding residential properties with fewer than 4 units.
A property portfolio is a group of property investments, which is owned by one individual or one company and that shares the same financial goals. The benefits of having a property portfolio over a single asset is that return expectations can be diversified; if one asset doesn’t hit its target, other investments might compensate. The overall expected returns of a portfolio aim for a balanced return from different properties over time.