One of the most common mistakes that many investors make is that they think they have to be a solo pilot through the investment world skies. Giving up any degree of control may be frightening at first, but when you do it you’ll see that you can concentrate on the scenery while someone with more experience flies the plane. This interesting analogy speaks especially to those that wish to invest in real estate. It is near impossible to wear all the hats successfully in this complex industry. What you really need is a village, hence a fund managed by experts, to grow your portfolio.
Leverage that Experience
It is said that nothing teaches us better than a bad experience, but do you really want your portfolio to crash and burn while you get that real estate experience? What better way to grow without huge setbacks than to learn from other’s mistakes? When you use a fund managed by those that have already learned those mistakes, your portfolio will be far safer. They haven’t just learned how to avoid mistakes, they have also learned how to get the highest performance. That is something that could take you a lifetime to learn through experience on your own.
Leverage that Expertise
It is not just what happens with experience that makes these fund managers such a good idea. It is also the expertise that they have in a wide range of applications. They haven’t just learned from experience. They have hundreds of hours, and often more than that, under their belt in educational courses and studies. They have to go through quite a bit of that just to pass the SEC examination for real estate investment advisers. In addition to the expertise they had to get to begin, they keep up with trends and the market through ongoing education and seminars.
The Benefit of Passive Income
Using a fund manager to take care of this part of your portfolio means you gain all the benefits of passive income. In other words, you are free to do other things rather than the day-to-day constant barrage of decisions to be made and problems to be dealt with. If you are feeling far too thinly spread between your various investments, this is a way to take some of them from your plate. You can still manage what you can handle easily and then start planning what to do with your free time. Chances are your family will appreciate having you around more, and you’ll appreciate a nice vacation on a sandy beach or at a mountain getaway.
Keep Your Money Working
Another excellent advantage of using a real estate investment fund operated by fund managers is that your money keeps working. When you deal with individual investments on your own, there will be gaps when you divest of one property and obtain another. You’ll have two types of pressure involved during this time. One, you know your money isn’t earning anything, or a minimal amount if in a savings vehicle of some sort. Secondly, the clock is ticking to make your 1031 Exchange.
When you have invested in a fund instead, your profits continue uninterrupted due to the fluid nature in which the fund is able to manage acquisitions and the large number of properties and investments involved. Furthermore, you completely avoid the pressure involved with making a 1031 Exchange timely.
With Repetition Comes Efficiency
It can take you hours of work to complete even one real estate transaction, even if you have done a dozen or so and have streamlined your strategies. However, it takes far more transactions than that to completely hone an efficiently run portfolio management policy. Through years of experience and plenty of repetition, a real estate fund’s expert team has developed an infrastructure that works like a fine oiled machine. Not only is the fund itself working at highest efficiency, but each member of the team has been well groomed for efficiency as well. This means higher overall efficiency and thus less mistakes and better performance, something it could take you a lifetime to accomplish on your own.
One of the things that the truly successful business people will tell you is that you should always focus on what is the highest and best use of your time, while delegating everything else to others that are a powerhouse in their specific talent. You only have 168 hours in a week, with hopefully 50 to 60 hours of that getting necessary rest, in which to accomplish everything that makes life all it can be. You can’t create more time, but you can move mountains with help from others.
Just as it takes a village to raise a child, using a real estate investment fund for your real estate investing simply makes a lot of sense. You’ll save time for the other things that matter while gaining all the benefits from leveraging their experience, expertise, and efficiency. You could reach your goals far quicker and provide for a rosy future for you and your family. So, step away from that cockpit and go enjoy the scenery. You deserve it.
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