Real Estate Investing Strategies

The stock market keeps going up. Interest rates are still incredibly low. Corporations and individuals have de-levered over the past few years and are sitting on vast sums of capital waiting to be deployed. Under normal circumstances every major indicator points to this being the perfect time to invest in just about anything. So why are investors so nervous?

To begin, most of the money fueling gains in the stock market is from institutional investors and major financial firms. The average American isn’t participating in a significant way beyond pension and 401(k) investments. There’s a difference between being actively engaged in the equity markets and just being along for the ride. Furthermore, the debt market might be attractive but the fallout from the financial crisis has left banks jittery about taking on too much risk and they are under more scrutiny than ever before.

Perhaps this explains why so many people are sitting on the sidelines and waiting to see what happens. This is why the real estate investment options that Sovereign Realty Group manages are so enticing to savvy investors. Buying safe and secure properties that feature first-class anchor tenants such as malls, national retailers and niche options like fast food chains is a great way to make qualified returns in an otherwise fragile environment.

Other options you might not have considered such as multi-tenant housing or even industrial properties can produce solid long-term returns if a number of factors such as property size, zoning and property taxes are thoroughly vetted.

Many of these investments aren’t necessary complicated, but they do require the proper level of due diligence. Some require extremely little maintenance after the transaction is consummated. But like anything in the financial world, it’s important to gather as many details about a property as possible and match it with your appetite for risk, desired return and ability to manage it if need be.

The approach Sovereign Realty Group takes to every client is to understand our investor first because your needs should always drive the strategy. We don’t simply throw a wide array of options in front of our clients; we take the time to listen to their investment wishes first and foremost. Your time is money and so is ours; therefore it’s worth investing the time before deploying the capital.