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ALL ABOUT REAL ESTATE INVESTMENT STRATEGIES
Asset Management in the Real Estate Portfolio
In the routine management of an investment portfolio the typical investor monitors bond yields, CD rates and overall performance in his/her stock portfolio. The purpose being to cull out poorly performing assets. It is inconceivable that an investor would enter into an investment and not plan for the continuous examination of yield positions. If an investment begins to perform poorly, a plan to protect the investor's position should be in place. Unfortunately, in direct contrast to the way most investments are monitored, real estate investments are seldom analyzed in-depth on a regular basis. And yet, real estate is one of the few investments providing alternative strategies beyond simply disposing of the asset. Continued below
Be aware of your after tax return and wealth accumulation over an anticipated holding period. Be informed as to the alternative strategies available that can offset the impact of new tax legislation, or perhaps changes in the market place. Real estate works well as an investment because of the many financial structuring and tax planning alternatives available to the investor. However the key to wealth maximization lies in unrelenting management of the asset. Maintain a policy of periodic in-depth analysis of each of your real estate holdings. Establish a 'Business Plan' for each individual real estate holding. About the Author Stewart L. Mac Donald, CCIM, is President of Real Estate Assets, Inc., a consulting services company focused on maximizing wealth through Asset Management in the real estate portfolio. Mr. Mac Donald has counseled on and has been an active participant in a wide range of investment real estate projects. He has written and presented seminars on "Strategic Planning in the Investment Real Estate Portfolio" before bar associations, financial planning and investment groups.
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