How Do The Rich Invest In Real Estate?

The most common way for the average investor to invest through real estate is to purchase stock interests in a real estate investment trusts (REITs). This comes with three advantages: (1) You get diversification across hundreds if not thousands of properties; (2) You get professional management of the properties; and (3) you get liquid marketability of your investment because you can sell it instantaneously online as easily as a stock.

However, among households with net worths in excess of $2.5 million excluding the value of their primary residence, approximately 34% own real estate outright without any REIT investments, 18% own REITs exclusively, and 15% own both real estate outright as well as REITs. … Read the rest of this article!