What does your IPS look like? Does it contain fixed income, emerging markets, growth, value and Real Estate? If not, find a way to incorporate more real estate into your portfolio because at the end of the day the ROI is profitable if positioned properly. Whether you are savvy or not, team yourself with a reliable investment advisor and a modern day real estate professional to earn a return on your investment. Real Estate is the only investment that provides you the flexibility and advantages of:

  • Cash Flow-your profit is a result of what’s left after any repairs, mortgages, taxes and insurance are deducted from the rent you collect.
  • Tax Benefits-Federal tax law allows you to deduct a portion of your property value from your income. If you want to reduce your tax burden then get some rental properties. Rental income isn’t subject to self-employment tax.
  • Leveraging OPM-if the Banks are lending then it’s part of the economy to leverage other people’s money. You apply for a mortgage, you’re approved and you pay it back over an extended term. If structured properly there could be no money out of pocket!

  • Principal Pay Down-granted you are paying back your loan with interest attached, you are also chipping away at your principal, giving yourself the opportunity to own a valued asset free and clear.
  • Appreciation-although, many have recently been burned by market volatility, real estate should be treated like a long term investment as it is going to appreciate in value. 
As in any Investment Policy Statement the key is short term/long term asset allocation which will help keep you on track during volatile times. The market is cyclical and will continue to be. Therefore, don't participate in the recession and diversify! Contact us today for access to our pocket listing program.