Substantially Lower Volatility
Over the course of the last 150 years Domestic Real Estate has proven to be substantially less volatile than the U.S. Stock Market. In fact there’s only been two instances where the Residential Housing market fell more than 20%. THAT’S 9X LESS than the frequency of the S&P 500 over the same time frame.
“most of our properties provide double digit rental yield vs less than 2% for the stock market”
Yield or not to Yield?
Not only is Real Estate substantially less volatile than the stock market, it also provides substantially better yields in the form of rent. These cash-flows we refer to as the “dividends” on our Equity Investments. With Cap Rates in the low teens it’s easy to yield in excess of 20% with a little leverage. The S&P 500’s dividend is only 1.85%
Unleveraged Yield Comparison
“a diverse portfolio with real estate in addition to stocks & bonds, is far more stable than just stocks & bonds alone”
diversify Your Portfolio
Research has proven that adding non-correlated investments to a traditional portfolio of Stocks and Bonds not only increases returns, but decreases the likelihood of a losing year. Combining this fact with multiple streams of Real Estate income like we do and the results are even better! Do you have a truly diverse portfolio? Maybe it’s time you should.