People often ask us how MetaWealth™ differs from REITs on the investment level, beyond the obvious ease of use and better experience from doing it in just a few minutes from a beautiful app. For those of you who are still new to the world of real estate investing and want to get familiar with REITs but also understand better what these type of trusts offer versus what MetaWealth™ offers, we’ve put together this short guide to walk you through. 

What is MetaWealth™?

MetaWealth™ is a platform offering fractionalized real estate investing opportunities which generate passive income. 

MetaWealth™ is the best way to start your investment journey in real estate. By simply downloading the app and creating an account, you get access to real estate properties  which can be invested in for as little as $100. 

But what if you don’t want to be more in control of your investment choices? How do you learn about the real estate market and select the right investment? 

Innovatively, MetaWealth™ offers an in-app experience called the Learning Center, empowering you with tools and knowledge to understand all aspects of investing.  

MetaWealth™ strongly believes that the most important investment we can make is in ourselves and through learning. In turn, the best investment decisions come from informed decisions, based on sound knowledge and in alignment with individual investment goals. We are committed to providing you with the platform to do this and creating a community of like minded individuals so that we can learn, grow and share together. 

What are REITs?

A real estate investment trust, or REIT, is a type of asset. It is usually owned by a financial company that owns or finances one or many properties. Although, REITs are quite different from the mainstream investment types, like stocks or cryptocurrency, for example. 

With stocks or crypto, you are the sole owner of the asset. With REITs, it's a different story. Instead of being the only owner, you are an owner with numerous other people. REITs collect all the capital from investors, and invest in apartments, hotels, offices, warehouses, cell towers, medical facilities, retail centers, data centers, and more. 

You can buy REITs like you buy stocks, since they are publicly traded. Just like some stocks, REITs pay out dividends from the income generated from the properties.

The (Dis)Advantages of REITs

On the surface, REITs are great investment opportunities. Being able to invest as little or as much as you want or can into highly-liquid, diversified commercial real estate is quite difficult to say no towards.

It seems like REITs are a great solution for young investors who aim to diversify their real estate investments into hyper-liquid assets. However, as with any investment, REITs offer some risk and annoyances, mostly based on the fact that your portfolio is managed in a non-transparent manner by a human being with their own biases and errors. 

Then come the management and transaction fees. Since you don’t own the REIT (you are just investing in it), that means someone else owns it. Usually, this is a management team, and part of the cost of investing in the REIT is supporting that management team which sometimes translates into hidden fees that all fall on you.  

You also have little control over buying and selling your shares or the assets that those shares belong to.

How is MetaWealth™ better?

Based solely on these initial broad strokes, it is easy to see how one may find similarities between what MetaWealth™ is providing and the already-established investing format that REITs offer. However, there is more to unpack about MetaWealth™ that separates it from the pack. 

With MetaWealth™, you choose your investment property. Let’s repeat that sentence: MetaWealth™ gives you the power to choose which investment you want to fractionally invest in. This is entirely different to REITs, where you invest without being able to choose which property you actually want. With REITs, the entire investment is up to the management team, whereas with MetaWealth™, your investment is predicated upon your own choosing and understanding. 

Speaking of understanding, REITs don’t really offer any guide to figuring out the most valuable asset. You have to do your own research, and with the limited time most people have these days, your selection is based off of a whim. This changes with MetaWealth™. With the in-app learning center, you can browse around and learn different real estate concepts without the jargon and technical complexities that are found everywhere else. 

Better yet, the fees associated with MetaWealth™ pale in comparison to REITs, which have been a big turn-off to most real estate investors. And, of course, there is no paperwork involved. MetaWealth™ gives you investment power through a smartphone app and a couple of clicks. 

 MetaWealth™ Wins

In a world full of uncertainty and confusion, retaining balance and stability should be the top priority for young and mature investors. Thus, MetaWealth™ has brought the biggest innovation to the table, combining many different technologies to produce a unique experience. 

The only way for you to understand why MetaWealth™ is revolutionizing real estate investing is by trying it for yourself. Once you’ve gotten used to the platform’s organic simplicity, there’s no going back to traditional methods. MetaWealth™ is here to stay, and so is your financial freedom. 

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