---
title: Reducing the Real Estate Knowledge Gap
description: When considering long-term investments or retirement income, real estate might not be the first option that comes to mind. Learn more about real estate investments and how they can diversify your portfolio.
image: https://www.realized1031.com/hubfs/what%20is%20the%205%25%20rule%20in%20real%20estate%20investing%3F-1348105839.jpg
---

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# Reducing the Real Estate Knowledge Gap

Posted Nov 18, 2022

![what is the 5% rule in real estate investing?-1348105839](https://www.realized1031.com/hs-fs/hubfs/what%20is%20the%205%25%20rule%20in%20real%20estate%20investing%3F-1348105839.jpg?width=750&height=392&name=what%20is%20the%205%25%20rule%20in%20real%20estate%20investing%3F-1348105839.jpg)This article was written by Realized Head of Wealth Management Rob Johnson and originally appeared on LifeHealth.com. You can find the full article [here](https://www.lifehealth.com/reducing-real-estate-knowledge-gap/).

When considering long-term investments or retirement income, real estate might not be the first option that comes to mind. However, as part of a risk-adjusted and diversified portfolio, investment property can be a worthwhile income generator, leading to long-term wealth building.

### By The Numbers

Based on a recent Harris Poll [study](https://www.realized1031.com/harris-study), conducted in partnership Realized, 81% of investors believe real estate can provide long-term income with far less [volatility](https://www.realized1031.com/glossary/volatility) than stocks. However, they aren’t sure how to invest. Moreover, few investors realize that real property can serve as a tax shelter or contribute to a tax-deferral strategy. 

This is an example of the real estate knowledge gap. To your clients, real estate investing is a good idea. The problem is they don’t know much about it.

### Options for Income

The first step to consider with any real estate investment is determining if the asset has the potential to create a reliable income stream. Passive opportunities, such as [Turnkey Properties](https://www.realized1031.com/glossary/turnkey-property) or [Delaware Statutory Trusts](https://www.realized1031.com/glossary/delaware-statutory-trust-dst) (DST), can offer income without the maintenance hassles of direct investments. However, both forms of passive investment have their challenges — they’re highly illiquid and only available to accredited investors.

### Guiding Your Client

No matter which option your clients wish to pursue, they must thoroughly research every opportunity, examining timelines, market- and property-specific data, and potential exit strategies.  

Reducing the real estate knowledge gap for your clients involves presenting a clear view of the potential benefits and risks of direct and passive real estate investments. When it comes to long-term income and eventual retirement, many investors find that passive real estate investments are good tools for building wealth.

*This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.*

*Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.*

*All investments have an inherent level of risk. The value of your investment will fluctuate with the value of the underlying investments. You could receive back less than you initially invested and there is no guarantee that you will receive any income.*

*No public market currently exists and one may never exist. DST programs are speculative and suitable only for Accredited Investors who do not anticipate a need for liquidity or can afford to lose their entire investment.*

*Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.*

Learn Ways To Help Build Long-Term Real Estate Wealth

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