As a real estate investor, you need to decide how much control you will have in managing your properly. Control is a two-edged sword. Being fully in control means you make all decisions on your own. But it also means you deal with tenants and related problems without any insulation. If you want to have as little involvement as possible, you are probably going to be better off investing in a real estate investment trust (REIT) or in a pool of mortgages, and avoiding direct ownership of real estate. Another op-lion is to hire a property management company.

Direct control is a powerful advantage. You cannot have direct control when you own shares of stock or put your money in a mutual fund, a savings account, or a mortgage pool. Direct control means that to some extent¡ªand often to a great extent¡ªyour decisions will affect future market value. Sometimes matters as simple as mowing the lawn, painting the outside of the house, or repairing an old gate can have a significant effect on the property's market value. Direct control also means that you have to be involved in the day-to-day management of the property.

You can hire professionals to help you with some of the management aspects of owning real estate. Many are involved as a matter of course, including insurance agents, bankers, appraisers, contractors, and accountants. Just as the president of a corporation depends on the board of directors, corporate officers, and managers to run the company, you have a lot of professional help available, if you need it. The important point here is that as a direct owner, you have a definite advantage. However, the range of decisions you will face can be overwhelming, so don't overlook the importance of getting help from other experts if and when you need it.

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