Is It Time To Worry?
Ernie Neve, CPA
March 17, 2020
Over the last month, the world has had all sorts of conspiracy theories about the possibility of a pandemic based on the coronavirus and the threat it poses to worldwide markets.
The truth is, it caused a major sell-off in late February and it continues to baffle researchers around the world. Politicians are pointing fingers and some of us are watching our investment accounts either shrink or we’re trying to move money into safer harbors for the short term.
I’ve had a few folks who have called or come to the office for help deciding if there is a strategy for saving their investments and the truth is – I don’t know. On the other hand, think about it like this – there are still plenty of places to invest and maybe the nervousness in the stock market is the Universe reminding you of that.
Now, I’m not making light of this medical emergency – I really am not – but what I am suggesting is this: if you have been worried about volatility for the last few quarters (and we’ve talked about that in these emails for months), then perhaps the time has come for you to look at – for example – real estate.
They’re not making any more of it, you know.
More importantly, there are dozens of successful ways to make very solid investments in real estate assets and virtually guarantee your money.
As an example, if low-risk commercial investments are your focus, triple net leases offer a great deal of risk aversion.
If you already hold some real estate but would like to rethink your assets, the IRS has become very friendly towards 1031 exchanges.
At the same time, asset classes like self-storage facilities give you the best of both worlds – the chance to finally have some protections most landlords don’t get, a nearly endless stream of value-adds, and a true “working” business.
What about single-family or multi-family housing?
Well, both offer incredible value to the investor, but each comes with their challenges. On the other hand, there is a lot of money to be made in single- and multi-family real estate investment. There are literally ways to make money in both asset classes no matter what the econo0my is doing, and for investors who have liquidity right now, there is no better time.
Now, let’s be honest, I’m an expert at accounting, not real estate. But the simple truth is, I’ve been involved in my own investments in this field as well, so if you’re ready to ensure that your money will continue to grow and expand while others are nervously eyeing the international markets.
As always, let me and the team know how we can be of service to you!
All the best-
P.S. if you haven’t looked at the calendar lately, I can’t help but remind you – Tax Day is less than a month away. If you’re still disorganized OR aren’t sure you can file on time this year, then let’s go ahead and get your extension filed now and start working on when your return can be ready. It’s cheap insurance!