Exchange Quarterly recently published its fourth quarter 2015 report featuring an article entitled 1031s…Hot and Diversified by Brandon Balkman, VP of Marketing at Mountain Dell Consulting, LLC. The article described the 1031 exchange market as "hot for real estate agents and securities brokers alike." Based on our analysis, we tend to agree.
In our last blog, we discussed ways to diversify your real estate portfolio. We stated that risk of significant capital loss could be reduced by acquiring multiple properties varied in purpose, location, ownership structure, management structure and tenancy because it would be unlikely that all such properties would experience challenges at the same time.
Whether you’re new to investing or you’re a career investor, you should understand the importance of diversity within your portfolio. The higher percentage of your portfolio that is invested in one investment or one type of investment, the greater risk you have of experiencing a significant loss of capital. However, when your portfolio is diversified among many types of investments, the likelihood that each type will experience loss at the same time is low; therefore, your risk of capital loss is significantly decreased.
As we journey into the new year, our belief remains strong that 1031 Crowdfunding continues to offer a unique opportunity for real estate investors who are looking for a 1031 exchange to simplify their real estate investment experiences, while potentially increasing their investment returns.
High 1031 exchange traffic has been “an effect of retiring baby boomers looking for a more stable investment class” according to Chad Kurz, managing partner of Matthews Retail Advisors, as quoted in GlobeSt.com’s September 17, 2015, article, Baby Boomer Behind Active 1031 Exchange Market, by Kelsi Maree Borland.
CrowdPay is an FDIC insured bank account that you can use to purchase investment opportunities. You fund your CrowdPay account by ACH or wire transfer. All future dividends, interest payments, as well as revenue sharing payments will be placed into your CrowdPay account. You have the option to transfer funds into the account, withdraw funds from the account, or purchase additional assets at any time.
The account is held by GoldStar Trust Company, a trust only branch of Happy State Bank, and cash that accumulates in your new CrowdPay account is FDIC insured. Please follow the below link for additional important information regarding your CrowdPay account.