If you’re thinking about getting into real estate this year, you’ve got more options than ever.
You can buy property yourself and build it from the ground up—or invest in REITs (Real Estate Investment Trusts) for a more hands-off approach.
Both paths can help you grow wealth. The key is choosing the one that fits your goals, timeline, and tolerance for risk (and paperwork).
Let’s take a closer look at each approach—so you can invest with clarity.
Two Different Roads to Real Estate Wealth
Real estate has always been a popular way to grow long-term wealth. But you don’t need to be a landlord anymore to be a real estate investor.
Here are the two main ways people are doing it in 2025:
- DIY Real Estate: Buying and owning physical properties like rentals, duplexes, or even Airbnbs.
- REITs: Buying shares of real estate companies through the stock market or private offerings.
Both generate income. Both offer growth. But they’re very different experiences.
What It’s Like to Own Property Directly
When you buy a property yourself, you:
- Own the physical asset
- Collect rent each month
- Pay the mortgage, taxes, insurance, and maintenance
- Benefit from property appreciation
- Can use tax strategies like depreciation and 1031 exchanges
This route gives you the most control—but also the most responsibility. You’re the decision-maker, and depending on your setup, maybe even the plumber at 10 PM.
Still, for many, this is where the biggest long-term upside lives.
What It’s Like to Invest in REITs
REITs are companies that own or finance income-producing properties—like shopping centers, apartment buildings, hospitals, or data centers.
You buy shares like a stock, and in return, you receive dividends.
Some key features:
- No need to manage tenants or properties
- Easy to buy and sell (public REITs trade on major exchanges)
- Lower minimum investment (sometimes under $100)
- Great for adding diversification to your portfolio
REITs are required to pay out at least 90% of taxable income as dividends, which makes them attractive to income-focused investors.
Which One’s Better? It Depends on You
Direct real estate might be better if:
- You want full control over your investments
- You’re comfortable managing properties or hiring a team
- You’re interested in tax benefits like depreciation and 1031 exchanges
- You have enough capital for down payments and reserves
- You’re in it for long-term growth and cash flow
REITs might make more sense if:
- You want real estate exposure without the hands-on work
- You need liquidity (you can sell anytime)
- You’re investing with a smaller budget
- You want instant diversification across dozens—or hundreds—of properties
- You value passive income without landlord stress
Can You Do Both?
Absolutely.
Many smart investors hold a mix of physical real estate and REITs.
For example:
- A long-term rental property for equity growth and tax advantages
- A REIT ETF in your brokerage or retirement account for passive income and diversification
It’s not a question of one being better than the other—it’s about how you balance them.
Final Thoughts: What Kind of Investor Are You?
Both direct real estate and REITs offer pathways to wealth—but they suit different types of people.
- One gives you control, leverage, and a more active role
- The other offers ease, liquidity, and convenience
The smartest choice? One that aligns with your time, capital, and personal goals.
🧭 Ready to Start Investing in Real Estate in 2025?
Start by defining your goal:
- Cash flow or long-term growth?
- Active involvement or passive income?
- Big down payment or small monthly contributions?
Once you’re clear, choose the tool—or combination—that works best for your lifestyle.
👉 Explore beginner-friendly real estate investment tools here