Put some money in real estate for the diversification and your fun money to mess around with and grow your portfolio.

Advantages of investing in a fund are diversification of risk and passivity for the investor.

Is that correct and if so how can i accomplish this diversification of risk ?

The answer is intuitive – income diversification is the primary reason to have more not less property.

To provide diversification, and not put all my eggs in one basket, I could spread the $1m out into 20 different deals at $50k each, with different lead investors in different real estate markets across the country. 

Mainly from a diversification strategy......With the right answers of the last 3 questions and such, it MAY make sense. 

Even if you could invest it, you wouldn't have much diversification.

A rising tide lifts all ships and we all know that diversification across markets is never a negative.

I would look at the poverty, crime and unemployment rate, the quality of the schools, diversification of the economy and particularly at whether the city is growing in population.

Liquid emergency reserves are a cost of doing business in real estate and there is no way to have them keep pace with inflation at low risk of volatility. 3) for long term yield and diversification I like two asset classes:- Stock market index funds are a good stalwart, and now may be a good time (it’s certainly better than at the start of the year to buy)- If you are willing to be entrepreneurial, small businesses might be a good option.