Why Don’t People Manage Their Investment Property Wealth Like They Do Their Other Assets?

Would you put all your wealth into a single investment? Or sell assets without detailed tax planning? Probably not. Yet, when it comes to investment properties, we see investors who don’t apply sophisticated wealth strategies that can help them pursue after-tax, risk-adjusted returns.

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Equity Investments - Wealth Management Gap

Looking for help managing investment property wealth? You’re not alone.

According to a Harris Poll Survey, 23% of investors think their financial advisors are knowledgeable about real estate investing, and 21% of investors see real estate agents as knowledgeable about taxes. Realized may be able to bridge that gap.

Wealth Management Gap - Real Estate Investor

Need Help Managing Property Investment Complexity?

When seeking the tax benefits and potential risk-adjusted returns available with investment properties, a complex set of interdependencies should be weighted and factored*. Let our team of professionals help you or your clients build a custom real estate portfolio.

Learn more about how Realized can help support your clients

Costs associated with a real estate transaction may impact investor’s returns and may outweigh the tax benefits. All real estate investments have the potential to lose value during the life of the investment.

Investment strategies

As Your Life Priorities Shift, Does Your Investment Property Wealth Need a Review?

If you are approaching retirement or other life milestones, your investment properties may need to be sold or exchanged to meet your changing income needs, risk preferences, and investment goals. Are you considering these factors when reviewing your investment property wealth?

Unnecessary Taxes

Having a portfolio strategy for your investment properties could help you defer taxes that could undermine cash flows and risk-adjusted returns, even if you do a 1031 Exchange.* Can you meet the requirements necessary to complete a 1031 Exchange?

The actual amount and timing of distributions paid by programs is not guaranteed and may vary. There is no guarantee that investors will receive distributions or a return of their capital.

Concentration Risk

When you exchange one individual property for another, your wealth may not be diversified to manage risk tied to geography, property type, or other economic factors. Does your investment strategy allow you to exchange your wealth across different properties?

Investment Quality Risk

Some investors do not have the deep expertise to properly assess individual opportunities and Sponsors, nor the buying power to access commercial real estate. Are you able to conduct the proper due diligence before making an investment decision?

Continued Landlord Burdens

Passive property investments can remove landlord burdens that keep you away from the people and activities you love. Is now the time to move into passive property management?

Learn More about 1031 Exchanges

Some investment property owners aren’t aware of 1031 Exchanges and the tax benefits and potential returns they can support over time.

What is a 1031 Exchange?

Get Help With Your 1031 Exchange

Some investors who complete 1031 Exchanges don’t always take full advantage of their power, which could limit their potential tax benefits, creating potential unintended risk and potentially affecting returns.

Why is Realized Different?

A wealth management strategy for your investment properties could help protect the wealth you’ve worked so hard to accumulate.

Realized Blog

What Financial Advisors Should Know About 1031 Exchanges

What Financial Advisors Should Know About 1031 Exchanges
June 7, 2023

As a financial advisor, you want to offer your clients helpful guidance and sound advice—that’s why they engage your services, after all. In many cases, you ...

How to Calculate Cap Rate

How to Calculate Cap Rate
June 6, 2023

If you’re involved with any kind of real estate investment or holdings, you’ve no doubt heard the term “capitalization rate,” or its shorter version of “cap ...

Can You Borrow Against a 1031 Exchange Property?

Can You Borrow Against a 1031 Exchange Property?
June 6, 2023

One of the potential benefits of direct real estate ownership is the ability to “borrow” against it. This is known as a “cash-out refinance,” and it involves ...

Realized Blog

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Contact us to see whether this type of investment can meet your objectives.

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