As 2018 comes to a close, Watermark is sharing some of our most biggest lessons and takeaways in our year-end executive review. So whether you have followed along with every blog article, or just recently discovered Watermark FUNDamentals, here’s a quick recap of 2018:

Elevation Lofts Soon After Groundbreak

Elevation Lofts Soon After Groundbreak

Elevation Lofts (December 2018)

Elevation Lofts (December 2018)

Why Invest in Real Estate?

  • Real estate is a tangible asset; different from other investment vehicles

  • Adding real estate will diversify any portfolio

  • Because of the nature of real estate, owning real estate will hedge against market inflation

  • Real estate investments offer tax benefit incentives to their stakeholders


Diversifying Real Estate Investments

  • Option 1: DIY (Do It Yourself) Real Estate

  • Option 2: REIT (Real Estate Investment Trust)

    • Equity REITs

    • Mortgage REITs

    • Hybrid REITs

  • Option 3: Private Equity Real Estate


What to Look for When Investing in a Real Estate Deal

  • Look at the numbers:

    • Cash-on-Cash Return

    • Cap Rate

    • Internal Rate of Return (IRR)

  • Assess the location of the real estate by asking questions, such as:

    • Is there population and/or job growth?

    • How have real estate prices fluctuated in the past and what trends are forecasted for the future?

    • Are there shifting demographics, and will that impact the housing demand?

  • Understand whether the quality of the build appropriately appeals to the target demographic and to your own investment goals.

  • Regardless of goals, know your own exit strategy.


Mills Creek Soon After Groundbreak

Mills Creek Soon After Groundbreak

Mills Creek (December 2018)

Mills Creek (December 2018)

A lot of People Want to Invest in Real Estate but they Don’t Want to Get Their Hands Dirty

  • Active real estate investing (or DIY real estate) requires hands-on knowledge and professional acumen to successfully:

    • Identify investment properties

    • Understand market conditions

    • Design desirable floorplans

    • Manage construction operations

    • Conduct leasing operations

    • Appeal to consumer for profits

  • Passive real estate investing involves no direct, “hands-on” labor nor requires any sophisticated industry knowledge. Rather, it’s about placing your trust in capable, informed professionals to perform those tasks on your behalf.


How to Benefit from a Self-Directed IRA (SDIRA)

  • Tax advantages

  • Benefits from a diversified portfolio

  • The power of investing in what you KNOW


The Watermark Advantage Series - What Makes Watermark Unique?

To learn more, reach out to Watermark Equity Group today!


Karl Sorensen

Karl is the Director of Operations of Watermark Equity Group. Since graduating Wheaton College (IL) with degrees in Business and Economics, Karl was active in both finance and construction before joining Watermark in 2016.