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Are you thinking about getting started with real estate investing, but you’re not sure if you should invest in an apartment, or a real estate investment trust?

In this article, I’ll break down investing in apartments versus real estate investment trusts, and I’ll provide you with my thoughts on which option is better for Real Estate Investors.

passive income

Why Invest In A Real Estate Investment Trust?

Let’s face it, even though investing in real estate is something that many investors dream about, the reality is that everyone is busy these days and, even though it’s easy for an investor to think that they can handle the responsibility of owning a multi-family property, the reality is usually a lot different.

When it comes to investing in a Real Estate Investment Trust, the good news that an investor does not have to be physically involved with managing the property themselves.

This means that maintenance, customer service, rent collection, and all the other traditional tasks that come from owning multi-family properties are not an issue because, with a real estate investment trust, an investor can enjoy passive income.

Real estate investment trusts are also ideal for stock investors because when an investor puts their money into a REIT, they will be paid a dividend regularly in the same fashion as any other dividend stock that they own.

Besides the obvious benefit of not having to physically manage the properties that they own, another benefit of investing in a REIT is low barrier to entry.  

When an investor puts their money into a real estate investment trust, they can get started with as little as $1,000. This is awesome because investors of all ages can put their money into real estate without having to wait years to compile all the money that they need for a down payment on their first multi-family property.

Another benefit that comes from investing in a real estate investment trust includes the fact that an investor does not have to be accredited. This means that unlike traditional multifamily investing where most investors have to be accredited and earning income over $100,000 per year, to get started with a real estate investment trust, all investors need to have is the money that’s required to make their investment in the REIT.

Investors who put their money into Real Estate Investment Trust can also enjoy the benefit of diversification. This means that they can have the benefit of being able to invest in a variety of properties across the board, and this diversification also means that their Diversified portfolio is going to provide them with a blended return-on-investment.

investing in apartments

Are Apartments The Better Option?

As a long-time, multifamily real estate investor, it’s hard for me not to talk about all the benefits of investing in apartments including the following:

Demand – There’s no denying that demand for multifamily properties has only a risen over the last 10 years that more people want to live in apartment communities across the United States than ever before.

Thanks to that demand, any investor who owns the multifamily property can have cash flow that they will be able to enjoy consistent cash flow on a monthly basis.

Ownership – The biggest benefit that comes from investing in apartments is direct ownership.

When an Investor owns the apartment building or any other real estate asset, they have direct ownership of the underlying asset and enjoy the benefits that come from owning that real estate including rents, tax breaks, and a wide variety of other KPI’s.

Leverage – Another important benefit that comes from owning a multi-family property is leverage. This means that an investor who owns an apartment building, duplex, triplex, or other multifamily property can refinance and use the money from the first property that they own for the purpose of investing those funds into their next multifamily property.

Cash Flow – Last of all, but most important, another awesome reason to consider investing in apartments is the cash flow that you will earn from investing in an apartment building.

When you have cash flow coming in from your multifamily property, that’s going to be cash flow that you can depend upon every month and that’s going to be income that you can use for accomplishing your financial goals.

Ultimately, when it comes to your decision to invest in an apartment complex versus a Real Estate Investment Trust, the decision that you make is up to you but, when you think about all the benefits that come from direct ownership of a multi-family property, it’s easy to see that owning an apartment building is the best option for every investor.

Contact Trier Capital

Trier Capital is a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.

Finally, you can invest in tax-advantaged real estate without having to deal with the nuance or complication of purchasing and managing a property yourself.

To learn more about our process for investing in apartments, contact us today by calling (630) 229-2383 or click here to connect with us online.

Erik Hatch

Erik is currently invested in projects in Florida, Texas and Kentucky totaling $79 Million. He is an accomplished leader who motivates and inspires action while at the same time, is grounded in business metrics and information that drives successful businesses.