Real estate investors are constantly looking for ways of increasing their gains and assets, and at the same time benefit from management ease. Considering the fluctuating nature of this industry, numerous strategies appear on the regular, as well as programs that target the improvement of investment processes. Lately, more investors are focusing on managed direct programs, which promise some appealing prospects. If this type of investment opportunity has only recently caught your attention, learning more about is probably one of your desires. Are managed direct ownership programs truly the future of real estate investments, and if they are, how so? The following details will make things a bit clearer for you.
High value exchanges
If you have been an investor for a long period of time, you have probably resorted to a 1031 exchange at least once. Well, all the benefits that this governmental program for real estate comes with will be heightened with the structured alternative. Managed direct programs give you the possibility to engage in a high value swap, one that can provide you with amazing financial rewards afterwards, and not just your typical commercial property swap. A structured real estate investment, if done by the book, can boost your wealth tremendously, leading to a rapid career growth.
Asset management ease
Being able to reduce your number of management responsibilities is of course a prospect that might thrill you. Managing a commercial property, such as a rental building, for example, can be extremely tiring and time-consuming, affecting all segments of your life. With this investment method, on the other hand, you will be gaining management relief. Because you will have the chance to acquire properties that come with a passive income possibility, the management effort you would have normally had to put in will be minimized. With increased assets, and thus increased profits, you will still benefit from a decrease in responsibilities. This way, the amount of time saved can be redirected to other investment strategies.
Access to financing opportunities
You have probably faced on more than one occasion the impossibility of pursuing a great investment opportunity by simply not being able to afford it, or facing a loan refusal due to certain factors. Well, what you should also knee about structured investments is that you could potentially gain access to better financing opportunities. Zero liability loans, for example, are something that many companies offering managed direct programs can help you obtain. Actually having the financing necessary to take your investments a level further, all without putting any of your current assets at risk, is definitely a game changer in the real estate market.
As you can see, there are a few strong reason why investors could consider managed direct programs or structured 1031 exchanges the future of real estate investments. Considering the wide range of benefits these types of programs come with, you can understand why more investors have started to choose them over other investment opportunities, and why you will soon start considering doing the same.