You know the importance of building a diverse portfolio of investments for long term wealth. You know that the most successful people in the world own real estate. But you haven’t taken the plunge yet. Maybe you don’t have the time or are concerned with investing a large amount of money in a single investment among other reasons. Real estate is an important component of a sound investment strategy. Here’s why.
1. Real estate diversifies your portfolio
Many people invest their IRAs and 401ks into the stock and bond markets, but leave themselves exposed by a sudden market turn by investing in too much of the same thing. Investing in real estate is an excellent way to spread out your assets and protect yourself against catastrophe.
Furthermore, by working with a real estate investment firm, you can further diversify your holdings. It’s far safer to own fractions of a multitude of properties, rather than the entirety of one property (as you would if you invested on your own).
2. Cash flow is often tax-free
Because of depreciation and mortgage interest deductions, it’s possible for your cash flow to be mostly or entirely tax-free. Many investors never pay taxes on the recurring money coming in and get to wait for capital gains on the sale of the property in the future (which could be decades later).
3. Real estate is an excellent retirement plan
With most high quality bonds currently at historic low yields it is next to impossible to build a high quality stable retirement income. By investing in real estate, you cement your retirement strategy with another stream of income.
4. Real estate properties typically appreciate
Generally speaking, well-located property in stable markets tend to appreciates in value. There’s a dip here or there, but long term value investors know that given a realistic amount of time (say 20 years), properties rise in value, at least with inflation. By investing in real estate, not only will you collect payments monthly, but you’ll make money on the back end when a property is sold.
5. It doesn’t require as much time and money as you think
Being a landlord is a full time job spending your days fixing toilets and listening to tenant complaints and dealing with tenant’s who don’t want to pay. But, you can invest in real estate without having to do all the work yourself and without having to invest large sums of money in a single property. By using crowdfunding to invest in real estate, you are the “landlord” with a small amount of money in many buildings with several other people. Our real estate acumen is used to make sure you get the checks without having to deal with any of the headaches. Also our existing investors get the first look at all of our new investments before anyone else has an opportunity so join us today.
Written by Mark A. Mascia, President and CEO of Mascia Development
Mark manages the investment and operating activities of Mascia Development, a diversified value real estate investment firm that acquires, owns and manages retail, medical office, family offices, multi-family, and industrial real estate properties in the most promising long term growth areas nationwide. Through crowdfunding, they create powerful real estate opportunities for high net worth individuals.
A fully integrated real estate company, Mascia Development has in-house capabilities in acquisitions, financing, re-development, and construction; and their principals have experience in property and portfolio management, leasing, and maintenance.
Mark has a strong career in real estate, previously managing a property of portfolios valued over $1.1 billion. Mark has worked at Archstone-Smith (a former publicly traded REIT) and Monument Realty, one of the largest office real estate developers in the Washington, DC metro area. Mark teaches real estate development and finance at New York University.
For more information, visit www.masicadev.com.
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