Successful commercial real estate entrepreneurs are some of the most impactful and brave business people our nation creates. They are experts in providing the spaces we work, eat and play in and the best of them grasp opportunities before their peers do. As they accumulate wealth, many look to equities as a diversification and liquidity play. But, to be sure, equities do not get their attention like those spaces do. And that lack of focus is why many don’t get the wealth advice they deserve.
Common blind spots include holding mutual funds in taxable accounts. These kick off unforeseen capital gains even during years when the funds had no capital appreciation. Or concentration risk by owning two or three mutual fund families that all own the same stocks. Throw in lack of transparency in performance, fees and holdings and it becomes a recipe for a lost opportunity.
If you are a commercial real estate entrepreneur take the time to vet your wealth advice. Do it with the same vigor you use when choosing partners to build, manage or sell those spaces we operate in. Otherwise, don’t be surprised if you find yourself operating an unproductive space when it comes to equity investment.