I came across the following article lately that I think sheds light on this concept:http://www.reuters.com/article/2015/02/05/us-usa-property-reits-analysis-idUSKBN0L927G20150205The other point I would make is that, in an IRA at least, one can leverage when making direct real estate investing but not when purchasing shares of a REIT.  

In 2011, 2012, and 2013 I just bought one little rental condo at a time with 20-25% down, cashed in my IRA, refinanced my house, and invested hard earned dollars in those down payments. 

Unfortunately, your licenses will expire after 2 years if you aren't represented by a Broker/Dealer or IRA. 

So you have some options that those with less capital have.Some ideas1) Invest through your IRA or other retirement program.

Great for my paper investment portfolio, so long as it's in a tax shelter like a Roth IRA, but not very tax efficient outside a tax shelter. 

If it is under $5 or $10 K it is usually meaningless, but If they have the equivalent of a year of rent, on top of reasonable income for day to day, I might consider, and if they have major savings/IRA there is no issue.

I have a LLC already established, one of the investors wants to invest with his self directed IRA.

@Shaun R.Most states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.Landlord = Lord of the Land = OwnerAgent = someone legally representing the ownerProperty Manager = AgentPlease send us any feedback via email, as we do not use the DM feature here.

I live in clinton township and my friend is in Ira township, so not far from you.

Right now I think it will be through my SD IRA.