--- title: What to Consider Before Investing in Real Estate and Other Alternatives description: Let’s discuss some things to help you decide whether alternative investments, and real estate in particular, are suitable for your investment strategy. image: https://www.realized1031.com/hubfs/Images/photo/abstract/two-story-retail-IS-146075193.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # What to Consider Before Investing in Real Estate and Other Alternatives Posted Sep 14, 2022 ![two-story-retail-IS-146075193](https://www.realized1031.com/hs-fs/hubfs/Images/photo/abstract/two-story-retail-IS-146075193.jpg?width=752&name=two-story-retail-IS-146075193.jpg) *This article was written by Realized Head of Wealth Management Rob Johnson and originally appeared on Forbes. You can find the full article [here](https://www.forbes.com/sites/forbesfinancecouncil/2021/10/26/what-to-consider-before-investing-in-real-estate-and-other-alternatives/?sh=1fd33dbf2dbc).* Some investors seek to diversify their portfolio, or invest in multiple asset classes, as a way to manage risk. To diversify, you might look at alternative investment opportunities, such as real estate. However, alternative investments come with their own considerations not usually seen in conventional investments, such as stocks and bonds.  Let’s discuss some things to help you decide whether or not alternative investments, and real estate in particular, are suitable for your investment strategy. ### Understanding Alternative Investments While conventional investments include stocks, bonds, cash, and cash equivalents, alternative investments are things like gold, art, collectibles, cryptocurrencies, and real estate. Here are some things to consider when evaluating alternative investments: - Increased risk - Accredited investor requirements - Illiquidity - In-depth due diligence and research - Higher fees Because some alternative investments do not correlate to or have a low correlation to the stock market, they can help manage overall portfolio risk. ### Real Estate Investment Options When looking to invest in real estate, investors have several options. These include [Delaware Statutory Trusts (DSTs)](https://www.realized1031.com/delaware-statutory-trust), Umbrella Partnership Real Estate Investment Trusts (UPREITs), and [Qualified Opportunity Zones (QOZs)](https://www.realized1031.com/videos/qualified-opportunity-zone). Other types of alternative real estate investments include: - Raw land - Co-working spaces - Mobile home parks - Real estate syndications There are special considerations to keep in mind when examining real estate-based alternative investments. Those include market trends and area demographics. Thus, performing due diligence is important for investors. At Realized, we consider several factors when evaluating real estate investments: - Market performance and demand drivers for the property’s location - Lease terms and comparable properties - Structural risk - The investment’s ability to meet investor goals and risk tolerance. If you’re interested in diversifying your portfolio with alternatives, consult a professional about whether or not such investments are the right choice for you. 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. Costs associated with a 1031 transaction may impact investor’s returns and may outweigh the tax benefits. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. 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 [![Get Tips For Managing Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-250c.jpg?width=250&height=250&name=IPWM-eBook-250c.jpg "Learn new ways to use real ...") ](https://www.realized1031.com/blog/what-to-consider-before-investing-in-real-estate-and-other-alternatives#blogform) Download eBook ---   --- ### Get Tips For Managing Real Estate Wealth ![Learn Ways To Help Build Long-Term Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-550.jpg?width=550&height=650&name=IPWM-eBook-550.jpg) Learn new ways to use real estate to pursue your wealth goals. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search ### [Why Realized](https://www.realized1031.com/why-realized) - [Wealth Management](https://www.realized1031.com/the-wealth-management-gap) - [Why Realized](https://www.realized1031.com/why-realized) - [Our Process](https://www.realized1031.com/how-realized-works) - [Scenarios](https://www.realized1031.com/scenarios) - [Private Client Program](https://www.realized1031.com/private-client) - [Realized Exchange Services](https://www.realized1031.com/realized-exchange-services) ### [The Company](https://www.realized1031.com/about-us) - [The Team](https://www.realized1031.com/about-us) - [FAQ](https://www.realized1031.com/frequently-asked-questions) - [Testimonials](https://www.realized1031.com/testimonials) - [Press](https://www.realized1031.com/press) - [Careers](https://www.realized1031.com/careers) ### [Partners](https://www.realized1031.com/partners) - [Financial Advisors](https://www.realized1031.com/advisor) - [Broker Dealers](https://www.realized1031.com/partners/broker-dealers) - [Real Estate Agents](https://www.realized1031.com/partners/real-estate-agents) - [Certified Public Accountants](https://www.realized1031.com/partners/certified-public-accountants) ### [Resources](https://www.realized1031.com/resources) - #### Learn - [Articles](https://www.realized1031.com/blog) - [Glossary of Terms](https://www.realized1031.com/glossary) - [Capital Gains Tax Rates](https://www.realized1031.com/capital-gains-tax-rate) - #### Watch - [Video Library](https://www.realized1031.com/videos) - [Webinar Archive](https://www.realized1031.com/webinars) - #### Read - [Delaware Statutory Trust](https://www.realized1031.com/delaware-statutory-trust) - [Tenants-In-Common](https://www.realized1031.com/tenants-in-common-tic) - [1031 Exchange](https://www.realized1031.com/1031-exchange) - [Qualified Intermediary](https://www.realized1031.com/qualified-intermediary) - [Qualified Opportunity Zones](https://www.realized1031.com/opportunity-zones) #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "This article was written by Realized Head of Wealth Management Rob Johnson and originally appeared on Forbes. You can find the full article here. Some investors seek to diversify their portfolio, or invest in multiple asset classes, as a way to manage risk. To diversify, you might look at alternative investment opportunities, such as real estate. However, alternative investments come with their own considerations not usually seen in conventional investments, such as stocks and bonds. Let’s discuss some things to help you decide whether or not alternative investments, and real estate in particular, are suitable for your investment strategy. Understanding Alternative Investments While conventional investments include stocks, bonds, cash, and cash equivalents, alternative investments are things like gold, art, collectibles, cryptocurrencies, and real estate. Here are some things to consider when evaluating alternative investments: Increased risk Accredited investor requirements Illiquidity In-depth due diligence and research Higher fees Because some alternative investments do not correlate to or have a low correlation to the stock market, they can help manage overall portfolio risk. Real Estate Investment Options When looking to invest in real estate, investors have several options. These include Delaware Statutory Trusts (DSTs), Umbrella Partnership Real Estate Investment Trusts (UPREITs), and Qualified Opportunity Zones (QOZs). Other types of alternative real estate investments include: Raw land Co-working spaces Mobile home parks Real estate syndications There are special considerations to keep in mind when examining real estate-based alternative investments. Those include market trends and area demographics. Thus, performing due diligence is important for investors. At Realized, we consider several factors when evaluating real estate investments: Market performance and demand drivers for the property’s location Lease terms and comparable properties Structural risk The investment’s ability to meet investor goals and risk tolerance. If you’re interested in diversifying your portfolio with alternatives, consult a professional about whether or not such investments are the right choice for you. 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. Costs associated with a 1031 transaction may impact investor’s returns and may outweigh the tax benefits. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. 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.", "articleSection" : [ "Real Estate Investing" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2022-09-14T19:53:10+0000", "datePublished" : "2022-09-14T19:53:10+0000", "description" : "Let’s discuss some things to help you decide whether alternative investments, and real estate in particular, are suitable for your investment strategy.", "headline" : "What to Consider Before Investing in Real Estate and Other Alternatives", "image" : { "@type" : "ImageObject", "height" : 500, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/Images/photo/abstract/two-story-retail-IS-146075193.jpg", "width" : 752 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/what-to-consider-before-investing-in-real-estate-and-other-alternatives", "name" : "What to Consider Before Investing in Real Estate and Other Alternatives", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/Images/photo/abstract/two-story-retail-IS-146075193.jpg" } ```