REIT's tout diversification as a buy in.

IE once you go down the road of buying rentals and if you ever want to ACTUALLY exit without giving the portfolio to your kids or charity you have recapture.. so you can end up getting on the Hamster wheel. you end up having to stay in the asset class for fear of a huge tax payment.Now that all said diversification is something to look at maybe you spread your funds around to a few different investments don't put them all in one spot. 

I am also looking at crowdfundin real estate sites which really excite me just for the fact that it gives so much risk diversification opportunities.

@Christian Hutchinson I completely agree with your diversification strategy - IF you have the money to do it.

Diversification is key.  

It is certainly less risky to own a portfolio, even if it is a small portfolio of 5 to 10 properties as that helps diversify our risk, the same way you add diversification into a stock portfolio.  

Shaun Hunt Maybe a property for appreciation is your form of diversification?

It's for death benefit and diversification, in the case of cash value policies.

I would definitely take small investment steps before going for larger deals.You show a concern about losing the money with a crisis, so diversification is key.

It sounds like if I can create an expertise around how real estate compliments an investment portfolio (tax benefits, diversification, etc.)