Alternative Investments
What are Alternative Investments (ALTS)?
Investors who worry about the uncertainty and volatility of the financial markets, often consider alternatives to the traditional stocks, bonds and mutual funds. The term "Alternative Investments" a.k.a. Alts, is wide-ranging. While it can include collectibles, commodities, precious metals, etc. we focus on Private Placements in real estate.
Niche Real Estate Asset Classes and Opportunities
Today's investors can allocate capital to mainstream Alternative Investment classes such as Multi-Family, Self-Storage, Diversified Industrial, Health Care, Student Housing, etc. In addition, they can diversify their Alt portfolio further into Niche Real Estate asset classes such as:
- Built-To-Rent Single Family Homes for First Time Buyers.
- Manufactured Home Parks in High Demand Locations such as the Florida Coast.
- Private-Pay Senior Housing and Care.
- Repurpose Under Utilized Commercial Properties.
- and land Infills to Attainable Housing in affluent Metropolitan areas.
WHY CONSIDER INVESTING IN ALTERNATIVE INVESTMENTS (ALTS)?
We believe that Alternative Investments are an important consideration for knowledgeable investor’s portfolio. Utilized properly, Alts provide diversification which could help mitigate overall investment risk. Our robust alternative investment platform allows High Net Worth investors to take advantage of industry-leading opportunities in such non-traditional strategies. The Alternative Investments which we offer have several properties that distinguishes them from traditional investments.
They:
- Are financial assets that traditionally have a low historical correlation with the stock market.
- Provide the potential for effective portfolio diversification.
- Often target higher returns than traditional investments.
- Could provide a hedge against high inflation.
- Are traditionally aimed at institutional or high Net Worth investors but have become feasible for qualified retail investors through lower minimums.
- Provide less liquidity than traditional investments.
- Involve a higher degree of risk and are not suitable for all investors.
HOW TO INVEST IN ALTERNATIVE INVESTMENTS (ALTS)?
There are several ways to diversify a portfolio with ALTS.
One could:
- reduce the allocation to traditional stocks, bonds or mutual funds and move some percentage to ALTS.
- invest cash directly into one or more alternative asset classes through an advisor specializing in ALTS.
- roll a traditional or Roth IRA or a 401K plan into a Self-Directed IRA (SDIRA). Then invest in various ALT categories through the SDRIA.
- invest in Private Equity funds, such as Delaware Statutory Trusts (DSTs), (see below).