As an investor, you know that it is important to diversify your investment portfolio. In this post, we will give you some tips on the best ways to do it.
Smart diversification is paramount to any successful real estate portfolio. Just like you don’t put al lof your eggs in one basket, you don’t put all of your cash into one type of investment. Below, we will discuss adding real estate, stocks, and mutual funds to your portfolio so you can diversify and build wealth in a smart and knowledgable manner.
Adding Real Estate
There are a number of great ways to build your portfolio, but real estate has been the greatest wealth builder for many people time and time again. While the market can go up and down and housing prices can rise and fall, real estate is a constant, meaning that people are always going to need a place to live. When you find the right property and the right people, you will be able to generate an income you can count on no matter what the market is doing.
Land is a real estate investment that is often overlooked. Land is boring. It just sits there, which can be the beauty of it. Land is an extremely low-maintenance asset, with the potential to appreciate quickly. If the area is up and coming, owning the right lot can prove to be very beneficial when you decide to develop or sell. Knowing when to act when it comes to land can be incredibly important. If you are able to sell for a price much higher than what you purchased it, you don’t want to hesitate in selling!
When adding to their portfolios, any investors will look right past commercial property because of the costs and unique maintenance needs. However, the right commercial property can quickly help you to collect a strong paycheck each month. In most cases, commercial renters will act in a more professional manner than residential tenants. They are more likely to pay rent on time and report any problems or repairs that are needed.
Mobile homes and even mobile home parks can be an excellent addition to an investment portfolio. Affordable housing is always in demand and for a relatively low up-front cost, you will be able to quickly add multiple mobile homes to your portfolio if you so desire. Once you find the right tenants, owning a mobile home can be a quick and easy way to build your income and your equity. With less competition, it is a great way to buy!
When most people think of an investment property, they are thinking about a rental. Whether you opt for a single-family, multi-family property, or even a small apartment building, residential rentals are the way most people begin their investment careers. It’s important to research properties, neighborhoods, and the current rental market. You’ll want to look in up and coming neighborhoods to find rental properties at low prices which are soon to be in high demand. At JDL Ventures, we can help you to find the perfect rental property to add to your portfolio.
The Stock Market
Investing in the stock market is a given for any portfolio, but there are some things first-time investors should keep in mind. First of all, you don’t necessarily want to buy when the market is doing great. When things simmer down, you might actually have less than when you started. You will need to be mindful of commissions and fees on each buy and sale you make. You can opt to buy stocks online or use the services of a professional broker. A broker will cost you more money, but for those just starting out, working with someone who knows the ropes can be a humongous asset.
A mutual fund is a conglomerate of multiple investors who create a fund to invest in many different securities such as stocks and bonds. Many investors like adding mutual funds to their portfolios because they can be pretty hands-off. One fund will diversify into many different investments and the cost to own is typically much lower than with individual stocks. The funds are professionally managed, making the process of owning easy and convenient. You do need to follow the market and make sure that the investments your fund is involved with are actually bringing in profits as opposed to costing you money.
At JDL Ventures, we help investors in Central New Jersey diversify their portfolios in order to build steady and consistent growth. We offer incredible investment properties that have been inspected and fully researched. We can provide you with the data ant the property history so that you can make a smart decision when it’s time to buy.