Diversify your portfolio by investing in real estate
Wednesday, December 3rd, 2008Investing in real estate is one of the best ways to diversify your portfolio. Over the years real estate has proven to be an effective component for investors looking for long term returns. One of the difficult things about investing in real estate is the hands-on nature of its management. Real estate requires the property owner to either be engaged in day-to-day operations or to hire a third party manager. Tenancy-in-common (TIC) investments allow investors who like the idea of real estate but aren’t interested in management to buy a percentage share of a larger asset. For example, in a TIC investment, the Sponsor of the project will put together a group of investors who will, in essence, own the property together. The property is professionally managed by an asset specialist and returns are realized based on the specific project.