What could be better than saying “Yea, I own that building” -to the amazement of your friends- as you walk or drive down a street in your city? Then back it up by sharing how much money the property leases for and checking the performance of your investment account real time on your smartphone. Well, that future is today with BuildingBits!
Making investments today that make sense long term is what makes your future bright; small, consistent investments that offer income and the potential for appreciation. Stocks offer this and so does real estate. What does it take to build a solid investment portfolio? Following are three things to consider.
First and foremost- never put all your eggs in one basket. That idea about selling cakes with gold lettering might work out fine, but it’s just a little sketch to hang your retirement plan. What is diversification?
It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk. -Investopedia
Real estate is an important part of any diversified investment portfolio. Most investors are under-allocated in real estate believing that their personal residence is part of this allocation. Excluding your home, do you own real estate? Your home, while looking like real estate, is not a real estate investment you look to for yield or income.
When excluding your personal residence, what percentage of your investment portfolio is in real estate? Direct real estate ownership provides a buffer to the daily market swings in stocks and bonds. Real estate is an important part of a balanced portfolio.
Whatever the investment- no matter what- the reporting should convey a clear connection between what you have purchased (the investment) and what the return on that investment is; this requires good reporting.
Transparent reporting just means (the reporting) that it makes sense and can be followed and tracked. The investment report you review, no matter if on paper or through an online portal, is a “snapshot” of your investment. It should come with customer service so that if there is anything you do not understand you can reach out to a real person for clarification.
Can I kick the tires, literally?
Kicking the tires is great when you can do it. Buying Campbell’s Soup stock is great, for example, because you can see your investment stocked and selling in every grocery store. Buying into a piece of local real estate is similar; you can see it (kick the tires) whenever you decide to go by that address.
BuildingBits is a real estate investment platform that allows you to invest in a building and own a piece of it. It’s usually a building that most people never have the opportunity to own because of its scale and size. This is a game-changer; the opportunity to own real estate without having to own the entire building. And, owning real estate without having to manage the property. BuildingBits provides an opportunity to diversify your investment portfolio, have quality reporting and “kick the tires”. “Yea, I own that” – not only sounds good but can be part of your reality.