Becoming a real estate investor can have a number of benefits as a career - that is, if you are doing it the right way. An investor in the real estate market can allow you to diversify your income streams and capture capital appreciation on a long-term basis. However, real estate investment has always been a tricky and intricate process, so there have been many times when investors end up messing up and end up having to deal with significant losses.
Fortunately, there are many professional investors out there that can help you figure out how to find the ideal ways to manage your real estate investment career. A prime example of such an individual is Stephen Nalley.
As a highly acclaimed American entrepreneur, mentor, veteran, and author, Nalley serves as the proud founder and Managing Partner of Black Briar Advisors.
Nalley started off his career working as the Chief Operating Officer and Chairman of the Executive Committee of Ocean Waters, which is a real estate investment company that has over 129 separate entities, 45 operating hotels, 79 real estate assets, and more.
Black Briar is one of Nalley's proudest accomplishments as it is a full-service real estate investment business that specialises in acquisitioning, repositioning, and renovating, including asset management of distressed hotel and resort assets.
In 2020, Nalley established a mentoring company that provides one-on-one counselling and group workshops that focus on leadership, mentality, and professionalism. He is a renowned figure in the professional industry that he has even made many radio appearances such as Discover Your Talent, The Mike Wagner Show, School for Start-ups Radio, and so much more.
And as someone who has successfully built up his career, he has shared a few tips of things investors need to focus on in their own careers.
Start Considering Diversification in Real Estate
One of the many benefits of owning real estate property is that it can diversify your asset holdings and income.
Multiple income sources can help reduce the impacts on all of your finances if one stream dries out. Plus, since the real estate market is not correlated with the stock market, holding both of the assets can actually be a good thing.
However, you need to keep in mind that real estate can help add diversity to your assets only if it is a component of your entire net worth. Plus, the main driver of the relative value of your property is based on the physical location that you add to your diversification strategy.
Stop Focusing Too Much on One Asset Class
Even though there is diversification in real estate, it can easily concentrate all of your holdings inside one asset class. Plus, this is something that happens to new beginner investors who end up having a higher risk of one asset class concentration as their property might represent an immense piece of their net worth.
The reason why this is a bad thing is because the real estate industry can be quite volatile, and while there are things you can control regarding your property, a majority of factors that drive the national and local markets are beyond your control.