Making IPWM Part of Your Core Offering: Operational Integration Tips
Investment Property Wealth Management (IPWM) is no longer a niche service. It’s becoming an increasingly relevant capability, particularly for advisors working with clients who have substantial real estate holdings. For advisors looking to differentiate and add value, integrating IPWM into the core offering may offer a strategic opportunity.
What Is a Non-Correlated Asset or Investment?
One constant in investing is that markets fluctuate—sometimes rising steadily, other times declining sharply. Fluctuations are inevitable, and these changes pose both opportunity and risk. Some investors may find market timing thrilling; others simply want a more conservative approach and maintain steady growth. For those seeking to manage risk exposure, diversification across asset classes is a common strategy. But not all diversification is equal. A key consideration is whether the assets within a portfolio move in tandem—or independently. This is where non-correlated assets come into play.
Baby Boomers, Investment Property, and the Strategic Evolution of IPWM
As Baby Boomers retire, a wealth transition is underway. This generation holds significant real estate assets—often from investment properties acquired over decades. For many, these holdings have been reliable sources of income and appreciation. Yet, as retirement progresses, priorities change. The question is no longer, “How much can this property earn?” but also, “How do I simplify my life and preserve what I’ve built?”
The 1031 Exchange: Maintaining Wealth Through Passive Management
When individuals are younger, investment goals typically focus on wealth creation. In this situation, investors are able, and willing, to take on higher risk, with anticipation of higher rewards. Investors have a longer life span to experience the ebbs and flows of a capital market, and their risk appetite can prove very rewarding in the long game, albeit volatile in the short.
Solving The Real Estate Tax Problem
Individuals acquire and own real estate because it is considered to be a good investment. When handled correctly, ownership of an office building can produce a steady cash flow, and a profitable return when the asset is sold.
From Active Investing Through Direct Ownership To Passive Investing Through Realized Portfolio™
In an earlier blog/chapter in this e-book, we introduced the concept of Investment Property Wealth Management™ as an alternative to real property ownership. The idea behind the IPWM™ solution is to use commercial real estate as a foundation to generate passive income, an important factor for investors approaching retirement.
The Basis Of Investment Property Wealth Management: A Modern Portfolio Theory Explanation
The goal of the Investment Property Wealth Management™ program is to move direct real estate owners into wealth managers. This is done by placing “hard” assets into professionally-managed portfolios, then offering owners the opportunity to invest in these portfolios. The strategy behind these portfolios is based on a concept known as modern portfolio theory.
Bridging The Gap Between Real Estate Ownership And Wealth Management
Real estate assets are alternative investments that are considered, by many, to potentially offer low-risk/high return cash flow, as well as portfolio diversification. For the average investor, real estate assets are typically found in the former of direct property ownership. The direct ownership style — buying and owning a stake in physical real estate, such as an apartment, office or retail property —is generally considered a stable investment, designed to provide regular cash flow and built-in asset appreciation.
