Trust Deed and REIT investments are seemingly similar at first glance. They both utilize “crowdfunding” type platforms that open the door to commercial real estate investments at a lower “buy-in” than your typical real estate venture (i.e. rentals, fix-n-flips, etc.); and offer a steady stream of passive income. However, there are some key differences that you should be aware of when deciding which investment vehicle is best for your portfolio and for your tolerance for risk.
If you are unfamiliar with these types of investments or just a bit rusty, here is a brief synopsis of both. There are many different types of REITs; equity, mortgage, or a combination of both (hybrids), that can be publicly traded, non-traded, or private. Here we are going to focus on the most common, the publicly traded equity REIT; where the REIT fund managers purchase multiple properties to lease the