Why Invest in Real Estate — into the mind of a former Wall Street investor
Simplifying the complex. This was a phrase I heard daily while I worked on Wall Street as a fiduciary for some of the largest institutional investors in the world. Oftentimes the most complex ideas can be synthesized to very basic universal principles. My hope with this article is to outline the top 3 reasons why I personally invest in real estate.
Passive Income — Direct investing in real estate provides passive income for investors. Passive income is any income that not is earned via salary or wage. In other words, real estate creates income without having to show up to a job and punch the clock.
Financial Freedom — Real estate has historically been an asset class that defines the majority of American’s net worth. Purchasing a home is the biggest financial decision most people will make in their lifetime. Because of this, real estate is one of the largest drivers wealth. More real estate = more wealth = more financial freedom.
Diversification — The idea of diversification is based on the concept of risk. Simply put, if I invest in stocks, bonds and real estate each of these asset classes has a different risk profile and a different function within my overall portfolio. Real estate helps to diversify my portfolio.
This article could be 100 pages long but for the sake of an introduction, I intentionally kept it brief. If there are any further questions please comment. I look forward to continuing this discussion on a topic I am deeply passionate about #realestate.
About The Author —
Kyle Webster is owner and CEO of Black Diamond Properties — a real estate investment group that specializes in acquiring 2–10 unit distressed properties in New Jersey. Prior to founding Black Diamond Properties, he spent four years on Wall Street in various sales and investment roles at Nasdaq and J.P. Morgan Asset Management. He is a graduate of the University of Pennsylvania.