J. William “Billy” McFarland, Jr. serves as a managing member of SmithMack, LLC, an Alabama-based investment company that he cofounded. SmithMack focuses on energy and real estate investment. In addition, J. William McFarland, Jr. is a managing member of Buffex, LLC, a real estate investment company that has holdings in multiple states.
For the everyday investor, purchasing real estate as an investment is often not a possibility. However, individuals who still want to diversify with real estate assets can turn to a real estate investment trust (REIT). Shares in an REIT trade much like stocks, and pay dividends. However, the shares represent partial ownership of a real estate portfolio rather than a company.
Different REITs may focus on very different parts of the real estate industry, from business properties to single-family homes. Many investors use REITs as a way of having a mall or office building represented in their portfolios without needing to purchase such a large property all on their own. REIT shares also have the benefit of being much more liquid than actual real estate, since they are exchange traded.
