In the Article, Which Marcelo Castro Alves Just Posted to his Website, He Describes How Some Investors are Seeking a More Stable Alternative to Fixed-Income Investments
MIAMI, FL / ACCESSWIRE / July 17, 2017 / Marcelo Castro Alves, founder of Focus Investment Advisor, has written and posted an interesting and educational article to his website that builds the case for real estate alternative investments.
To read the new article in its entirety, please check out http://www.marcelocastroalves.com/marcelo-castro-alves-builds-the-case-for-real-estate-alternative-investments/. To read a Portuguese version of the same story, please visit http://www.marcelocastroalves.com/marcelo-castro-alves-constroi-o-caso-para-investimentos-alternativos-imobiliarios/.
As Alves noted, given the uncertainty concerning how traditional investments will fare in the next several years, he has observed that certain investors are seeking alternative investments.
"Clients want more stable alternative to fixed-income investments that will generate yield, such as investments backed by real assets," he noted, adding that it is his job as an Independent Financial Advisor to show and explain to his clients the nontraditional alternatives for their portfolios.
"Asset-based investing has in the recent years gained in importance in the U.S., and many investors today consider it a substitute to fixed income."
As he wrote in the new article, by allocating across multiple asset classes including real estate investment vehicles, investors can gain diversified exposure that should help dampen volatility at the portfolio level.
"Real estate can be a valuable addition to an investment portfolio – complementing the traditional mix of stocks, bonds and options," he wrote, adding that an asset with a low correlation to other investments in a portfolio can both reduce overall portfolio risk and increase returns.
Real estate offers the potential for growth and income, plus diversification, and has reputation as a hedge against inflation, Alves wrote.
"We prefer real estate fund backed by real assets than REITs. For example, 'short-term real estate loans,' such as fix-and-flip products, provide our clients with desired cash flow and diversification," Alves said.
Mass access to high-quality alternative investment products is an admittedly new phenomenon, Alves noted in the article. Greater familiarity is needed before financial advisors and clients accept the fact that alternative real estate investment vehicles are not exotic, high-risk options, but may be appropriate choices for meeting passive-income and higher return expectation in a volatile, low-interest rates environment.
As Alves noted, before the JOBS Act was created in 2012, such investments were only available to institutions and big money investors, but now smaller investors have access to it as well.
"As an Independent Advisor we are providing our clients with access to opportunities across several assets classes, including real estate vehicles," he said, adding that at Focus Investment Advisor, he and his team now have the opportunity to build a more diversified portfolio for their clients that can help reduce their exposure to market volatility, with low-correlated products and attractive returns.
"Advisors should explore such alternative investments for their clients. They can use them to create differentiated products that will make their clients happy when they see the favorable returns," he said.
"Instead of having to defend the drop in clients' portfolios every time the market get into stress, they'll be receiving praise for their diversification strategy."
About Marcelo Castro Alves:
Marcelo Castro Alves founded Focus Investment Advisor in 2011. Prior to that, Marcelo was an independent advisor for three years with another group in Miami. Before that Marcelo Castro Alves was at Private Bank sector of major banks in Miami and in Europe in the Global Private Client Division, primarily managing investment portfolios for high net worth individuals. For more information, please visit http://www.focusinvest.net/.
Focus Investment Advisor
40 SW 13th St., Suite 201
Miami, FL 33130
Marcelo Castro Alves
SOURCE: Marcelo Castro Alves