REITs get funds from rental income and interest generated by large-scale investments in such commercial properties as shopping malls and office buildings or in mortgages or mortgage-backed securities.

You can borrow money from your 403(b) for real estate investments. You'll pay annual interest, at rates determined by your individual administrators, on whatever money you withdraw until it's paid back. Vanguard's David Vasquez, registered representative for small organizations such as schools said that if you miss a payment, then the unpaid balance is treated as an early distribution, triggering taxes and a 10% penalty.

Dan Otter, an elementary school teacher who runs the 403(b) resource Web site 403bwise.com, thinks the risks outweigh the benefits when missing a payment can trigger a loan default that makes the loan ineligible for reinstatement. The safest option is to wait it to roll over your 403(b) funds to an IRA account that allows self-direction in real estate or start a new IRA account entirely.