Quality private real estate investments firms can create and deliver a lot of value for high value net worth individuals. First, I’m going to define the problem high net worth individuals have. Then, I’ll describe the solution and the implied benefits.
High net worth individuals are people who are worth more than $1,000,000. This means that if someone would sell all of the assets of a high net worth individual, with the exception of their home residence, they will receive more than $1,000,000. The problem these individuals face is that after they reach a certain amount of net worth, they do not know what to do with their money.
Let’s say you have a business and after a couple of years you sell it for more than $1,000,000. The business probably made you about $100,000 per year in profit before tax. As a owner, you no longer have to go each day to your business. You can even retire. But now you face the bigger dilemma of “what should I do with my $1,000,000?”.
You could either lose them completely by spending it or you could invest it. A very low risk strategy is to let a private real estate investment firm take care of the details and invest the money for you. The investment money will keep producing rent for years to come. The sum you invest will likely keep its value, it will not be affected by inflation and it will generate income. This is quite an amazing way to maintain your wealth and receive income for doing almost nothing.
The following strategies, concepts and techniques will help you understand why private real estate investment firms can be of great help for high net worth individuals:
#1: At the moment, real estate is dirty cheap.
Sooner or later, the real estate market will bounce back. The United States and other countries will get out of the recession. At the moment, houses and buildings are below their market value. There’s still a surplus of houses. Because the US population is growing and the standards of living will eventually get back to normal, in about 5 or 10 years the real estate market will bounce back. This means that every dollar you invest right now in real estate will maintain or increase its value and generate income through rent in the meantime.
#2: Don’t keep your wealth in cash.
Money is not wealth. If you keep a lot of your wealth in the form of money, you are taking a gamble. The government can start printing plenty of paper dollars which will lead to inflation and in turn will diminish the value of the currency.
#3: It takes you less time.
When it comes to investing your personal assets, it’s important to not trust anyone completely. So, you should be informed about real estate and know enough to be able to make good decisions. But you shouldn’t try to make all the research and decisions by yourself. This is why there are private real estate investment firms.
A quality private real estate investment firm can really help you maintain and slowly multiply your wealth. If you are a high net worth individual who is looking for ways to maintain the wealth you have accumulated over the years, then a private real estate investment firm may be the right answer for you.
Brad S Cohen can help you show you how to invest your high net worth in real estate. He will show you the tricks of the trade, make you recommendations and help you increase your wealth.