What is the difference between direct and indirect real estate investment?

Direct real estate investment involves buying and owning physical real estate properties, such as apartments, commercial buildings, or rental homes. As the owner, you would be responsible for managing the property, finding tenants, and collecting rent.

Indirect real estate investment involves investing in real estate through an intermediary, such as a real estate investment trust (REIT) or a real estate mutual fund. In this case, you are not directly owning the property but investing in a company that owns and manages real estate properties. Indirect real estate investment allows investors to invest in real estate without having to deal with the daytoday management of the property.