Balance Your Investments In Various Markets

Reduce risk and maximize returns by investing in several areas as every market is different. You’ll hear it from most prudent financial advisors: “diversify, diversify, diversify!” chanted like some sort of prophetic mantra. A great piece of advice, to be sure! The problem is that most advisors are merely “diversifying” between a group of fairly lame assets like stocks, bonds, and mutual funds. These types of assets are not proven and rarely work for anyone – in contrast with real estate, which has steadily created wealth for millions of people.

Former U.S. Speaker of the House Tip O’Neil was famous for saying “all politics is local.” Well, all real estate is local too. Media companies love to paint real estate with a broad, national brush when reporting on news stories or the latest market trends. While this may attract an audience, it is completely inaccurate! Real estate is a local investment. Investment diversity does not mean taking a wild swing at a handful of stocks (or otherwise). It does mean locating and purchasing income-producing investment properties in various geographic areas around the country.