Investment Strategies

Diversification in Real Estate | Real Estate Investing Strategies | Delaware Statutory Trusts

Diversification is a generally accepted method of managing risk. You likely would not invest all of your savings in a single stock, and the same principal is true of real estate investing. However, diversification in real estate is difficult to achieve. Individuals are often limited to their home markets and constrained by available funds to acquire relatively high value assets.

DSTs remove these limitations, enabling individuals to tax-efficiently transition equity from individual properties to diversified and passive real estate investment portfolios.

For example, in a single 1031 exchange you may be able to transition from actively managing a single rental property in your hometown, to having ownership interests in institutional-quality assets throughout the country. Examples may include large scale assets such as an apartment complex in Dallas, a distribution center in Atlanta, or a portfolio of self-storage facilities across the Midwest.

In this example, you may hold ownership interests in many properties, collectively worth hundreds of millions of dollars and achieve meaningful diversification by holding period, investment strategy, sponsor and more.

Diversification is a key tenant of Investment Property Wealth Management™. Proper diversification may allow investors to better manage risk and pursue superior risk-adjusted returns compared to actively managing concentrated positions in local properties.

Visit Us:
www.realized1031.com

Follow Us:
Facebook: www.facebook.com/Realized
Twitter: www.twitter.com/realized

Products You May Like

Articles You May Like

Mid-Century Home With The MOST UNIQUE Fire Pit | Flip or Flop | HGTV
REDFIN Price Drops ALL TIME HIGH
Turkish LIRA recovery lessons for Foreigners buying real estate in Antalya Turkey
THE CITY SHUT US DOWN – Flipping Houses Update Ep.02
This is Nigeria in utter COLLAPSE and no one is stopping it | Redacted w Natali and Clayton Morris

Leave a Reply

Your email address will not be published.