Lending vs. Investing in Long Distance Rental Properties

[Eric Graig]

I'm new to BiggerPockets and am dipping my toes into real estate. I'm trying to figure out the comparative advantages and disadvantages of real estate lending through a site like RealtyMogul or PatchofLand (others?) versus actually becoming a landlord. I live in NYC so local landlording is out of the question. I have capital available for both options. Mainly I'm interested in the comparative risks, rewards, and headaches.

Any thoughts/advice?

[Matthew Irish-Jones]

@Eric Graig you will learn a lot less investing in Patch of Land type companies, it is more comparable to stock investing than to land lording.  There is a lot more involvement with long distance investing directly.  You also have far more control of the outcome.  You get to pick your realtor, lender, property manager, insurance broker, and your home.   You are intimately tied to the process, have decisions to make in regards to all of your vendors and your investment, and receive all of the benefits of RE estate investing.  However... you also receive 100% of the risk...so you have to be careful.  

There is enough information on this site to get started and make good decisions.  RE investing is less complicated than the Guru's make it out to be.  Do your research, find reliable vendors, pick a good market, have a clearly defined strategy and you can make it work. 

It also has to do with the amount of time and your personality type.  There is certainly more involvement with directly investing in RE.  As with anything in life or any industry, the more time you commit, the more you learn, and the better you execute, the better your returns.

Good Luck!