RealtyShares allows you to choose and invest in a specific property or a group of pre-determined properties, whereas a REIT only allows investments into pools of capital that are often directed toward investments limited by asset class or geography. REITs can sometimes charge relatively high fees, and there are some tax advantages to direct participation structures such as those utilized by RealtyShares. REITs are often so large that they have difficulty participating in opportunities involving "small balance" projects under $50 million, which projects represent many of the opportunities listed by RealtyShares. Finally, because most REITs are publicly traded, the shares in those REITs can be subject to the same volatility as may be experienced by the stock market generally. You should consult your tax or investment advisor for additional information.
Articles in this section
- Investor Questions?
- How does RealtyShares work?
- Real Estate Glossary
- How is RealtyShares different than a Real Estate Investment Trust (REIT)?
- What is an Accredited Investor?
- What is a Qualified Institutional Buyer?
- What is a Qualified Purchaser?
- Why should I use RealtyShares to invest in real estate?
- What types of investments does RealtyShares offer?
- Do I have to pay a fee to invest?