How to Build a Diversified Real Estate Investment Portfolio

Having a diversified commercial and multifamily real estate portfolio is important to potentially reduce risk and create multiple opportunities for potential income and appreciation. Diversification is even more important in tumultuous times like these. Here’s a look at how to build a diverse real estate investment portfolio.

A for sale sign in front of a duplex
(Image credit: Getty Images)

Recent survey research by National Real Estate Investor magazine indicates that nearly 60% of high-net-worth investors are expected to increase their allocation to investment real estate in the next 12 months. Millions of Americans invest in alternative assets, including real estate. It’s an important step towards diversifying a portfolio with investments that don’t necessarily correlate with the stock or bond markets.

Once you decide to invest in real estate, the challenge is how to build a diverse portfolio.

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Dwight Kay
Founder and CEO, Kay Properties and Investments, LLC

Dwight Kay is the Founder and CEO of Kay Properties and Investments LLC. Kay Properties is a national 1031 exchange investment firm specializing in Delaware statutory trusts. The platform provides access to the marketplace of typically 20-40 DSTs from over 25 different sponsor companies. Kay Properties team members collectively have over 340 years of real estate experience, have participated in over $39 billion of DST 1031 investments, and have helped over 2,270 investors purchase more than 9,100 DST investments nationwide.