Karen Lee Bertiger
Lic. Real Estate Broker
CDPE, REDM
Florida & Arizona
Commercial & investment Real Estate
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Investment Real Estate


Click here for Your Secret Weapon for locating the best areas for real estate investments.

In my humble opinion, the best thing you can do is engage in formal planning strategies based on your desired goals.

This involves determining what type of an investor you want to be. Some potential strategies include the following:

If you have a business & would like to invest in real estate, by far the best method is to create a Qualified Plan (governed by ERISA - Employee Retirement Security Act.) Visit the IRS website for the most up-to-date information & publications. A Qualified Plan allows the investment of plan assets in real property or mortgages. 

If you really just want someone else to do the work, public & private REITs may be considered. See the note below on brokerage accounts! - possibly a good reason to invest in something directly that you control (real estate)?

There are many other opportunities as well. 

So, to begin, determine what type of real estate investor you want to be! 

An article in a Forbes' Investment Guide Special issue, written by Larry Kotlikoff, exposes a reason why you would want to close your stock brokerage account which you think is covered by SIPC insurance: "Nothing could be further from the truth. Investors with accounts at firms that fail as a result of fraud can, incredibly, be forced to pay an SIPC-appointed trustee money; rather than the other way around." It involves a definition/calculation of "net equity" - which is in turn being revised (hopefully) in a bipartisan bill before Congress - H.R. 3482 & S.1725. That bill would base the definition of "net equity" on your latest brokerage statement before your stock broker fails. Another good reason to invest directly in real estate!

If you are interested in becoming an investor in single family homes, be sure to assemble a trusted group of advisors. You can avoid a large number of problems.