As we promised in the last blog, this year is all about helping you achieve your investment goals. If you have the itch for real estate, you’ve come to the right place. And we are here to definitely help you!
Some of you may be wondering, I want to buy a piece of real estate but I don’t know what to buy or where to begin. After all, there are so many different types of investments to choose from in real estate. Kind of like the stock market you can buy various types of stocks from different companies including mutual funds. For real estate, just to name a few asset classes, there is residential, commercial multifamily, industrial, storage, etc. The list goes on, so which do you buy?
It goes back to your goals and your end state. Do you want to be actively involved? Or do you want to be passively involved? Not everyone wants to be involved in the day to day operations of real estate like we are. Some would prefer to collect a guaranteed check monthly or quarterly because it fits their lifestyle, after all– don’t we do enough as it is? Our lives are demanding and it seems like we are always strapped for time. And there are others like my team who love to be involved in the day-to-day operations of things. It fuels and feeds our daily fire.
Personally, our company likes to focus on residential and multifamily, because you’ll always need a place to live. Our portfolio focuses in this area because it’s the bread and butter of America. You can be active and passive in this asset class. You buy a single family (duplex, triplex, quad, etc.) and be an active investor (by the way there is no such thing as a passive investor in this area even if you are fronting the money). Or you passively invest in a multifamily apartment complex syndication deal where you are the limited partner. We do both because it diversifies the portfolio, and we believe in having multiple streams of income.
But the other real estate asset classes are just as good too. We know a lot of successful people who have made their fortunes in these real estate asset classes. For instance, it seems like everyone in America loves their stuff. So much so that we don’t throw things out. We’ll pay thousands of dollars every year to store stuff that we’ll never touch again. Storage is a great asset class. Just not something we touch at the moment. We say at the moment because our business continues to grow and evolve as things change.
So, ask yourself before you jump into the real estate game, do you want to be active or passively involved? The majority of people think they want to be actively involved but when rubber meets the road, they find themselves wishing to be passively involved. It’s a lot of hard work. Lots of things can go wrong. But there are so many benefits of being an active investor, the returns are fantastic but the risks are high. Where do you want to be in 5 or 10 years from now? Let those goals drive what you invest in.