Why Financial Advisors Won’t Tell You About Real Estate Investing
in Business, Investment Strategies, Ohio, Real Estate Investing, Turnkey Investments

Why Financial Advisors Won’t Tell You About Real Estate Investing

“A financial adviser (or advisor) is a professional who provides financial guidance to clients based on their needs and goals. Typically, they provide clients with financial products, services, planning or advice related to investing, retirement, insurance, mortgages, college savings, estate planning, taxes and more,” as defined by Investopedia.com. But most financial advisors won’t tell you to invest your money in real estate. Why? Is it because it’s a bad investment? Nope.
The answer is unfortunate but simple: They don’t make any money off your real estate investment.

Financial advisors generally make their income off your investments. They receive percentages of the amount you invest in mutual funds, insurance policies and more. With real estate, there is no income to be made for a financial advisor. They don’t receive a monthly perentage. They don’t receive an initial commission. Nothing. Put yourself in their shoes. Why would you recommend something that isn’t putting food on the table?

However, that doesn’t mean real estate isn’t the best – or at least great – addition to your investment portfolio. Financial advisors just won’t tell you about it. So what about that long-time, family friend that is your financial planner? You’ve done tons of business with them. Surely they would be up front with you, right? Wrong. Imagine this. You walk into your financial advisor’s office and tell them to take $100,000 out of your mutual funds so you can invest in real estate. That’s $100,000 of investments their losing a percentage of income on. Good luck.

When it comes down to it, financial planners aren’t real estate experts. 

It’s important to understand that financial planners aren’t real estate experts. In fact, some may know less than you do about this asset class. Real estate is one of the most proven asset classes in history.

However, some financial advisors or planners will recommend real estate – or at least won’t cringe when you bring up the topic. Many self-directed IRA management companies, like Specialized IRA Services, will allow and encourage real estate investing. If you choose not to go that route, try using a fee based financial advisor. Rather than making income on your investments, they’re making money on a flat fee basis and will be more likely to recommend a variety of opportunities.

But your other investments are hands off. With real estate, I am going to have to be involved and be a landlord and deal with hassles, right? Wrong. That’s why there is the turnkey real estate investing solution. It’s hands free (to an extent). We’re not going to say it’s completely hands off. You’re going to talk with your property management team every now and again. However, it’s no where near the amount of involvement of traditional rental property ownership.

Turnkey real estate is truly a game changer for the person wanting to invest in real estate without the time or knowledge. Just don’t ask your financial advisor. They will surely say otherwise.


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Contents of this message/blog post are of general nature only and should not be relied upon solely when making an investment decision. We are not attorneys or financial advisors and any advice or answers to questions in these communications to you is hypothetical only.  If you need legal or financial advice, please consult an attorney or financial advisor of your choice.