1. Some examples of direct investment are single-family homes, duplexes, apartments, lands, and commercial property, and some examples of indirect investments are real estate syndicates, real estate investment trust, high-risk mortgages, and participation certificates.
2. The advantages of indirect real estate investments are easy entry and has limited financial liability.
3. The disadvantages of direct and indirect real estate investments are illiquidity, declining property values, lack of diversification, lack of tax shelter and management problems.
4. They are all similar because the are all similar to mutual funds.
5. Participation Certificates are risk-free, and each month you can receive a check for the pricipal and interest or reinvest in the profits.
6. Teresa could invest in an REIT. REIT work much like a mutual fund, they are low risk, and you hire an independent real estate professional to carry out certain management activities.
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