Real Estate Investments

Introduction Due Diligence REITs 1031 Exchanges Real Estate Funds

At DFP, Inc. we are firm believers that real estate should have a place in an investor’s portfolio. Real estate can play an important role in providing adequate diversification. There are multiple methods by which an investor can purchase real estate. One can buy their own real estate (direct ownership), or they might buy shares of real estate through a partnership or tenant-in-common (TIC) ownership. In addition, an investor could buy into a fund or real estate investment trust (REIT), in which multiple investors pool their money to purchase one or more properties. Any of these ownership methods could help an investor achieve a desired level of real estate diversification.

Investors need to be very careful when purchasing real estate and perform proper and adequate due diligence. Investors need to understand the risks of leverage, fees, asset type, location, liquidity, additional capital needs, etc. They should seek the advice of professionals who have extensive experience in the field of real estate. Investors should understand that there is no such thing as the perfect investment and they should understand the benefits and risks associated with real estate, including the risk of complete loss of capital.

When properly educated, when adequate due diligence is performed and when one understands the potential benefits and risks associated with the investment, real estate can play an important role in one’s overall portfolio allocation. Real estate helps investors acquire assets that are not closely correlated to the stock market, which can potentially help an investor create additional diversification. At DFP, Inc. we have spent extensive time in analysis and due diligence of various real estate offerings. Throughout the real estate section of this website, you can learn more about some types of real estate investments available through DFP, Inc. and DFPG Investments, Inc.