If you’re reading this, you probably already know that real estate is one of the most secure investments around and that, if you do it right, can deliver solid ROI.
In fact, real estate is one of the most popular investments among private investors.
So why don’t financial advisors talk more about it? Let’s dive in and shed some light on this subject.
3 Reasons Your Financial Advisor Doesn’t Talk About Real Estate
1 – Compensation Structure
Licensed advisors can sell securities like stocks, bonds, insurance products, mutual funds, etc. But they can not sell real estate.
Usually advisors make their money through commissions from the sale of a stock or financial product, or they make a percentage of portfolio assets they’re managing.
Advisors don’t and can’t make any compensation from recommending real estate, so, of course, they never do.
This is a huge disadvantage for investors seeking strategic investments that are secure and deliver strong ROI. For example, at Reunion Investments, we specialize in very strategic real estate that provides our clients with a massive 35% return on investment! That outperforms not only average real estate, but also stocks, mutual funds and most other traditional investments.
2 – College Fell Short
The closest thing to real estate that future financial advisors learn in college may be REITs or real estate investment trusts. Nowhere do they learn what it means to invest in real estate, what comes with owning physical property, or anything of the sort.
3 – Regulations
To restrict unethical practices, financial advisors have a lot of rules they need to follow. If they were to suggest real estate, this opens them up to a lot of legal headaches. It’s different with stocks and things of that nature, as they are heavily regulated as well.
All 3 are major hurdles keeping investors from getting what is possibly very useful advice from financial advisors. Luckily, we’re here to help.
The difference at Reunion Investments
More than a traditional real estate investment firm, Reunion Investments strategizes your dollars. We guide you to the right investments that work with your wealth building goals. Too many people invest with little to no strategy and hope for the best. We consistently outperform other firms by seizing incredible opportunities and utilizing our community partners in cities across the USA.
2 Reasons Real Estate Investing Outperforms Alternatives
1 – Income Diversification vs Portfolio Diversification
Every financial advisor will talk to you about portfolio diversification. This is usually in reference to stocks and bonds. But what’s even more important is income diversification.
Basically, if you lose your day job, what then?
When you have multiple sources of income, it takes some of the fear out of losing a job, which is huge. You can still get through tough times until you find a new job or even start your own business.
Portfolio diversification alone simply can’t provide the same security.
If you continue to expand your income streams, you eventually reach a point where you no longer need to rely on a day job (and someone else being in charge of your well-being). This is the point of financial freedom; the ultimate form of financial security!
2 – The Math Proves It
Financial planners love to say that you’re financially independent when the total of your retirement savings or an investment reaches 25 times the cost of what you need to live each year.
So if you need $40k to live on, you’d need to save $1 million for retirement. That’s a pretty high number for a lot of people.
Here’s how you can use real estate investing to cut that in half.
Let’s say again that you need $40k/year to live on. Invest in assets that generate an 8% cash-on-cash return. This is very reasonable. With that kind of return, you’d only need to save $500,000!
Going even further, working with Reunion Investments, we deliver our clients an average of 35% returns. Imagine the possibilities and financial security you can experience with such massive returns. If you’d like to learn more about how we do this, and how to invest strategically, call us today at 214-438-4809 or send us an email at Reunion@higherc.com.