Real Estate Investments 101
Investing in Real Estate Through Private REITs
Real estate has long been considered an advantageous investment. There are good reasons behind this perception: it tends to appreciate; it’s a tangible asset; and it generates income in the short and long-term, usually through rent. In recent years, real-estate investment trusts, or REITs, have become popular because they offer a way to indirectly invest in real estate. REITs own a portfolio of properties, which they operate to generate a return for investors, making them an accessible way to invest in real estate without purchasing or managing a physical property.
How Alternative Investments Can Benefit Your Portfolio
Increase Diversification
Alternative investments allow investors to diversify their portfolios. While traditional asset classes such as stocks and bonds can be subject to market volatility and may accrue or lose value at the same time, alternatives can offer exposure to different markets and asset classes, helping to mitigate risk and potentially improve overall portfolio performance.
Potential for Higher Returns
Alternative investments have the potential to generate higher returns than traditional investments [source this]. This is because many alternative investments are not subject to the same regulations as traditional investments, which can limit their potential returns. Additionally, many alternative investments offer exposure to unique markets or investment strategies that may be difficult to replicate using traditional investments.
Increase Diversification
Many alternative investments, such as real estate and commodities, can provide protection — also known as a hedge — against inflation. This is because these types of investments are often tied to physical assets that may appreciate in value over time. Check out our white paper on how multi-family property can provide a hedge against inflation.
Increase Diversification
Alternative investments can provide access to unique investment opportunities that may not be available through traditional investment channels. For example, private equity investments may provide access to emerging companies or new technologies that are not yet available to the public. Similarly, hedge funds may offer exposure to sophisticated investment strategies that are not available to individual investors.
Increase Diversification
Investors can use alternative investments to customize a portfolio to meet specific investment goals or preferences. For example, they may choose to allocate a portion of their portfolio to real estate to provide diversification and inflation protection, while also investing in hedge funds to potentially generate higher returns. Alternative investments offer a range of benefits to investors. While they may not be suitable for every investor, they can provide diversification, potential for higher returns, inflation protection, access to unique investment opportunities, and portfolio customization. If you are interested in exploring alternative investments further, be sure to consult with a qualified financial advisor to determine if they are appropriate for your individual circumstances and investment goals.
Real Estate Investing White Papers
Diversification With and Within Real Estate
Re-Examining a Hedge Against Inflation: Multi-Family Residential Real Estate
Interest Rates & Multi-Family Residential Real Estate
Ready to Explore Private REIT Investing Further?
If you’re looking for more information about Avenue Living’s real estate investment vehicles, use the form to contact our Sales team and we’ll be in touch.