Ownership of land and properties has long been established as one of the most secure forms of personal wealth. In a modern portfolio, real estate can offer several advantages over other types of investments, including market stability, inflation resistance, and diversification. Real estate can deliver regular supplemental income and sales profits that exceed stock market averages. There are several avenues to pursue if one wants to add real estate to their holdings; why is Laurian Club the right investment for you?
Real estate investment generally falls into two categories: passive or active investment, referring to the right or obligation to manage and use the assets. Passive investors put their money in Real Estate Investment Trusts (REITs), Real Estate Exchange Traded Funds (RE ETFs), and crowdfunding projects, while active investors engage in flipping, rental properties, or investing in second homes for appreciation and use. There are several considerations for both types of investments.
Pros for passive investors:
- Doesn’t have to deal with any of the work associated with buying or managing properties
- Will have a full-time asset manager balancing the mix of investments to optimize income
- Has high liquidity; meaning they can sell at any time
However, many of the benefits of property ownership are not available to a passive investor:
- There is no option for personal property use
- An investor has no say in where or which properties are purchased
- Investing in a fund is not actually investing in a property, so there are no tax benefits
Active real estate investors receive several benefits over passive investors;
- They can choose specific locations and homes that fit their vision
- They can use, rent, trade or otherwise make the best financial use of their properties
- Investors have access to multiple tax benefits
On the negative side, this type of investment requires a significant commitment of resources that may not be practical for most:
- Substantial amount of time to research markets, identify and purchase a property, facilitate upgrades, then market and rent or sell a property.
- High upfront expenses, carrying costs, management fees, and home maintenance expenses
- Renter damages can compromise the value of your investment
Laurian was designed to solve these issues. As Limited Partners in a holding company, investors are relieved of the burdens of management and liability, but receive the benefits of property ownership, including property use, flow-through taxation, and profits from appreciation. Partners have influence over where properties are purchased and the portfolio mix. The greatest benefit may be that the partners own a share of the tangible assets held by the company. Investments are secured by the value of real property. It’s the perfect solution to real estate investment.
