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THE POWER OF DIVERSIFICATION

stacks of money from diversification

With Easter weekend coming up, I am reminded about the wise old investment adage of not putting all of one’s eggs into one basket. Due to high up-front investments required to acquire quality income properties, we often see investors committing too large a portion of their net worth into too few assets. If all goes well, this strategy may be OK – but since no one can predict the future with 100% certainty, smart money is invested using an asset allocation model to spread risk and minimize losses if a single investment fails to perform. With investment minimums as low as $25K, DSTs offer investors an opportunity to develop a portfolio of investments that can be highly diversified across asset classes and geographies thereby minimizing the potential negative consequences that could occur if individual properties experience problems.