Tens of millions of investors are diversifying their portfolios across some or all of stocks, bonds, REITs (Real Estate Investment Trusts), and other assets. While you may actively engage in studying the stock and bond markets and the managers of real estate trusts, this is all “passive” type investing. Someone else is creating the returns. With stocks, it’s the companies and their management, and it’s the same with corporate bonds. REITs managers create your returns through their buy and sell decisions for properties or mortgages.
These passive investment vehicles are ideal for many investors who don’t want to get involved and are happy with others making decisions that impact their return on investment. However, if you’re desirous of higher returns without the fees associated with these vehicles, you may want to consider an active real estate investment business. This is particularly true if you are invested in REITs, as you understand something about the hedge and profit potential of real estate.
Moving from passive investing, and particularly from REITs isn’t going to be difficult, and there is no reason to fear the process or the results you’ll enjoy. If the bulk of your investable assets is in IRA or 401k accounts, you can still move to active real estate investment. You will probably have to move your accounts to custodians offering real estate investment services, but it’s easy and they’re still the same type of accounts with the same tax advantages.
You’ll be in control of your ROI like never before, and you’ll find that double-digit returns are the norm for successful real estate investors, especially in rental property investment. Remaining passive is fine, but getting active is better for income.
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