1. A direct investment in real estate is one that you hold the deed for and are a direct owner or partner on that deed so a house you bought with your own money in your name would be a direct investment. An indirect investment in real estate is one that someone else (a trustee) owns on paper or the deed in other words but you have an investment in that you will have a gain/loss in.
2. Your personnel assets are safe from forclosures if there is a loan out on the property.
3. Direct investments can lose alot even your personnel belongings. Indirect investments might not go as planned if the person you were counting on to make the mortgage payment doesnt come thhrough or decideds to pull out.
4. Both combine investors money to increase the portfolios perchasing power. Also they provide diversification without so much research during personnal time.
5. I would offer them a stress free situation with opertunities. Then I would convence them that without an investment and there money sitting in the bank that they were atually loseing purchasing power due to inflation.
6. I would suggest a REIT because it will diversify her investment in one swing. This is because REIT's hold properties in all field. one could contain Commercial, Rental, and residential real estate . This is inportant because of cash income. A rental will give some money every month where as a residential home will usually be sold and give one huge lump of cash all at one.
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