“The problems are bigger, so those who help solve these problems are rewarded in a bigger way. For the tactful investor who recognizes that real estate is at bargain prices, the market has never been better,” said Matthew Sindlinger, Pillar Capital Advantage.
As for the government trying to slow down foreclosures, it is impossible because there is too much inventory available that consumers can recognize a good deal now when they see one. For the investor who wishes not to invest on a single property, the answer is being a part-owner in a diversified real estate portfolio.
“This type of joint investment can compared to buying a share in a mutual fund,” said Sindlinger.
Let us say you are an investor with one property and you ended up with a non-performing dud. Well, you just assumed all the risk despite how appealing the property was when you purchased it. Now, let us say the same property is in a portfolio along with 24 other properties. With a good property manager, the probability is high that these property investments are performing high.
“If the investor has a highly diversified portfolio in a fund of 100 to 500 properties, the investment is safer and the investor is not at risk of placing their eggs into all in one basket for risk,” said Sindlinger.
There is no doubt the return on property investment might be a little lower, but it is much more predictable and reliable. These are both necessary aspects of growing funds for your retirement. Funds investing in diversified real estate are often structured as REIT’s,LP’
Qualified retirement funds such as 401(k)’s and IRA’s can even be utilized for investing in these types of funds when converted to a self-directed IRA. The market is certainly in place for the savvy investor’s future. Even as the residential housing market shows promise of rebounding, the buzz is commercial real estate will soon be following suit.
For more information about investment strategies, please visit Pillar Capital Advantage and go to our contact form and a representative will be in contact with you.



