Quest Expo 2022: The 3rd Annual Quest Expo returns to Houston September 23rd – 25th for an event-filled weekend that we’ve all been waiting for! Click here to learn more.

Pay Online

Contact

Call: 855-386-4727

Client Portal

Pay Online

Contact

Call: 855-FUN-IRAS

Client Portal
  • Home
  • Education
    • Education Center
    • SDIRA Video Library
    • Upcoming Webinars (Live)
    • Our Blog
    • IRA Education Articles
    • Due Diligence
    • Prohibited Transactions
    • Security Awareness
    • FAQs
  • Open an Account
    • Traditional IRA
    • Roth IRA
    • SEP IRA
    • SIMPLE IRA
    • Health Savings Account (HSA)
    • Coverdell Education Savings Account (ESA)
    • Solo 401(k)
    • Checkbook Control IRA LLC
    • Referral Program
  • Investments
    • The QTC Investment Hub
    • Real Estate
    • Promissory Notes
    • Private Entities
    • Cryptocurrency Investing
    • General Investments
    • Fair Market Values (FMV)
  • Forms
  • Events
    • The Quest Expo
    • SDIRA LIVE Webinars
    • Quest Special Events
    • Houston Events
    • Dallas Events
    • Austin & San Antonio Events
    • Other Cities – tbd
    • Invite Quest to Speak
  • About
    • Mission Statement
    • Client Testimonials
    • Executive Team
    • Meet the Management & Education Team
    • FDIC: Federal Deposit Insurance Corporation
  • Client Portal
  • Contact Us
    • Make a Payment
    • General Contact Information
    • Contact a Certified IRA Specialist
    • Career Opportunities
    • Coronavirus (COVID-19) Resource
Quest Trust Company›Blog›Real Estate Investment Trust

Tag: Real Estate Investment Trust

The Key Differences Between Direct Real Estate Investments and REITs

Posted on September 29, 2013June 7, 2019 by questadmin
Estimated reading time: 3 minutes

Real estate investments continue to be an attractive option for many investors, including those with self-directed IRAs. In fact, an increasing number of retirement savers are looking to use their self-directed IRAs to invest in assets that are less volatile than the stock market, while at the same time providing a level of current income that greatly exceeds what they could receive by investing in bank CDs or US government bonds.

But not everyone feels comfortable investing in individual pieces of real estate. For those who want to increase their real estate holdings while still maintaining a measure of diversification in their portfolios, there is the option of investing in Real Estate Investment Trusts (or “REITs”). Let’s explore some of the differences between these methods of investing.

Control Over Investment Decisions

REITs can have a broad focus in their investments, or they can specialize in different types of real estate (i.e., office buildings or strip malls). They can even target their investments on particular areas of the country. While a real estate investment trust will make its broad investment philosophy and strategy publically known, this is all the information you have in deciding whether or not to invest.

In other words, you won’t be able to make individual investment decisions when you hold shares of a REIT. In fact, when you purchase shares of a REIT to gain exposure to real estate investments you’ll never be able to do anything other than sell your holdings if you don’t like investment choices that the REIT is making, or buy more shares if you do.

With direct real estate investments you’ll have complete control over how to proceed with a particular piece of real estate; whether to rent it out, renovate it, sell it, or whatever other decision you believe holds the greatest possibility for maximizing your gains.

real estate investmentEase of Liquidation

Shares of publically trade REITs are generally easier to sell than individual parcels of real estate. However, this greater level of liquidity cuts both ways when it comes to your investment portfolio. For example, some experienced real estate investors find that they are able to realize their greatest gains when there are relatively short-term and seasonal spikes in sales prices that can occur in certain real estate markets. The trading of REITs is generally much more market efficient, so you probably won’t ever be able to realize any of those types of gains.

Local Real Estate Markets

Another advantage that direct real estate investing may hold over real estate investment trust is that when you purchase individual properties you can leverage whatever knowledge you have concerning your local real estate market. Because REITs invest in a number of different properties, that type of investment won’t enable you to purchase an undervalued property that you might be aware of locally.

Finally, while REITs may have a place as a component of many real estate investors’ portfolios, the greatest investment gains are likely to come from well researched and negotiated investments directly in individual pieces of real estate.

Do you want to invest in self directed IRA, learn more about the plans on Quest Trust Company.

Posted in Can Quest Trust Company purchase an investment ?Tagged A Self Directed Ira, Directed Ira, Individual Retirement Account, Invest In Real Estate, Investment Goals, Ira Administrator, Ira Custodian, Private Money Investing, Prohibited Investments, real estate, Real Estate Investing, Real Estate Investment Trust, Real Estate Market, When your IRA is used to purchase an assetLeave a comment
  • Open an Account
  • Download Forms
  • See our Events

Contact an IRA Specialist

  • Get your Self-Directed Account for FREE for 48 Hours!

    Get your Self-Directed Account for FREE for 48 Hours!

    You have 48 hours to take control of your retirement for free! Open your account with code: QTC48 Now is the time to get your retirement cleaned up with the help of Quest Trust Company, the leading Custodian of Self-Directed IRAs. For the next 48 hours Quest is waiving the $100 account opening setup fee […]

    Register NowSee All Events
  • Get Your Tickets to the 3rd Annual Quest Expo!

    Get Your Tickets to the 3rd Annual Quest Expo!

      Join the #1 Alternative Investing Conference of the Year! In the fast-paced investment industry, timing is everything and by attending the largest alternative investing conference in the Nation, you’ll be on the cutting edge! Attendees can experience fresh takes on proven real estate concepts, with plenty of the Quest flare you know and love. […]

    Register NowSee All Events
  • The SDIRA Social

    The SDIRA Social

    Browse all of our upcoming events here!  Tapping into TRILLIONS of dollars’ worth of investment capital for your real estate deals is easier than you think. All it takes is the right conversation, and you could potentially unlock unlimited capital for your deals. If you’re looking for ways to increase your net worth by improving […]

    Register NowSee All Events
  • Our transition from Bancorp South Bank to Frost Bank

    Our transition from Bancorp South Bank to Frost Bank

    We expect this transition to be smooth and easy, requiring almost no changes on the client end! There are no new systems to learn nor any account changes to make. The only update to be aware of is the new Incoming Funds Instructions. The old instructions for Bancorp South will no longer be applicable or […]

    Register NowSee All Events
  • Introducing our new QTC Investment Hub!

    Introducing our new QTC Investment Hub!

    With this new feature, you can now submit investments directly through the client portal and track your investments in real time!

    Register NowSee All Events
  • Virtual Classes + Networking

    Virtual Classes + Networking

    Check out our full class schedule here! Our weekly Quest webinars give you access to unlimited free education! Get the knowledge to help grow your retirement at one of our weekly classes on Tuesdays and Saturdays at 12PM CT! And don’t miss our Virtual Networking Happy Hours on the 4th Wednesday of every month – […]

    Register NowSee All Events

More Upcoming Events

  • Houston Events
  • Austin Events
  • Dallas Events
  • Upcoming National Webinars
  • Client Referral
  • Blogs
  • Security Awareness
  • Testimonials
  • Due Diligence
  • FAQs
  • FDIC Insurance
  • Career Opportunities
  • Contact Us
  • The Quest Expo

Connect with Us:

DISCLAIMER: Quest Trust Company does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought.

© 2021 Quest Trust Company. View our Terms of Use.

© 2021 Quest Trust Company. View our Terms of Use.