When it comes to investing and getting a good return on investment (ROI), it is essential to diversify your portfolio. The experts at Luxe Crowdfunding know precisely how to do that. We understand why this is so crucial when it comes to your portfolio. We take pride in being one of the best sites for real estate investors and real estate crowdfunding. We expert advice is available to everyone in the United States.
Why Is Diversification So Important?
One of the most effective ways to build a profitable portfolio is through investment diversification. Simply put, diversification is the process of investing in different types of assets, minimizing a portfolio’s overall risk by lessening the impact you’d see from a single asset loss. This is especially true when investing in real estate, where deals may outperform and underperform based off of original projections.
Consider the following example to help clear the air:
Most investors look for both high returns and low risk on their investments; diversification helps to produce this golden combination. As an example, consider a 10-year period. Baylor University Professor William Reichenstein describes: “$1,000 invested in stocks grew to $1,900, while $1,000 in Treasury bills grew to a more modest $1,732. But if you owned a mix of 75% stocks and 25% Treasury bills and rebalanced back to these targets at the end of each year, your portfolio would have ballooned to $1,925—more than if you owned just stocks.”
Studies indicate that the risk-return tradeoff of portfolios that include real estate improves versus portfolios that only include standard financial assets. Between 2007 and 2011, pension portfolios including real estate saw higher returns of more than 1.4 percentage points compared to traditional stock-bond mixes.
We Feature The Best Sites For Real Estate Investors
Luxe Crowdfunding is an investment management platform engaged in private equity and alternative investments across a range of real estate asset class, including multifamily, senior housing, and storage.
Are you looking for one of the best real estate crowdfunding sites? At Luxe Crowdfunding, we seek to generate outsized risk-adjusted returns by leveraging our experience, market analysis, and exclusive network of relationships. We focus on opportunistic ground-up and value-add developments in six MSA’s (Chicago, Dallas, Denver, Houston, Minneapolis, and Orlando).
Our people combine decades of achievement, reputation, and integrity. Our years of experience and dedication to success is what has made us one of the best real estate crowdfunding sites. Contact our team today to start investing today. We are here to help make you successful.
Call Us Today For Real Estate Crowdfunding Advice
If you have any questions when it comes to diversifying your portfolio for a real estate investment, we have all the information you need to guarantee success. Luxe Crowdfunding is here to provide you with the best results, especially when it comes to real estate crowdfunding. We are considered one of the best sites for real estate investors. Call or visit us today for more information. We are available to everyone across the United States.