While it is important to pay attention to the ROI (return on investment) of an investment…We focus more attention on preservation of capital.
Let’s take cryptocurrency for example. If you purchase $50,000 of cryptocurrency, you might gain 50% + on your investment if it skyrockets up as it did last year, but you also might lose 50% of your investment if it drops down, as it did last year…
Now lets examine real estate. If you purchase $50,000 of real estate alongside us, you might gain 8-20% a year if the project does well, but unlike cryptocurrency, real estate does not trade hands thousands of times a day, making it far less volatile. It would be very difficult for a stabilized real estate project to drop 8-20% in value in a short amount of time, especially since we improve the projects as we hold them.
Yes, there are market factors in play with real estate such as rising interest rates, recessions, unemployment, supply and demand ect. However, at the end of the day, the fact is that you own a tangible piece of property thats value is based on the income it produces. In other words, you physically own an asset that holds value to other buyers in the market because it is, in essence a business that produces income. Not to mention, we all need roof over our heads don’t we?
Capital preservation is about protecting the capital you put into an investment (ie your $50,000). There are plenty of investments out there that put your hard-earned money at risk of capital loss, we find residential apartment buildings to be one of the least worrisome investments around for capturing a great yield and limiting your downside risk. The question is…are you taking unnecessary risk in your portfolio? Are you getting the yields you desire?
I’d be happy to discuss with you how we help investors, and most importantly how we can help YOU preserve your capital. Let’s schedule a time to chat!