No one can totally eliminate investment risk exposure, but real estate is seen as one of the more stable investments. By investing in different types of cash flow assets you avoid depending on a single revenue stream and limit your risk to external factors affecting your portfolio.
Here are a few suggestions for investments to help strengthen your real estate portfolio:
- Real Estate Investment Trusts (REITs): These trusts refer to companies that purchase income-producing real estate and pay dividends to investors in the company.
2. Land: Some of today’s best real estate investors have raw land in their portfolio because it offers so many options like: new development, long-term land hold, and possible land lease.
3. Commercial Real Estate: Commercial properties include retail space, office buildings, and industrial type buildings. Commercial real estate is a great way to expand your portfolio and can generate higher profit margins for investors.
4. Multifamily Properties: Investors can explore different markets and investors can protect themselves from market factors that may affect the profitability of single-family homes. Investing in multifamily properties is a great way to add value to your real estate portfolio.
If this article peaked your interest or raised questions about commercial real estate, give us a call at (615) 794-1411. Our real estate professionals can give you answers and guide you in the right direction in your own real estate portfolio.