How an RIA Can Manage Your Real Estate Investment Interests

By Published On: October 29, 20212.3 min read

Registered investment advisors (RIAs) are available to investors as financial confidants and trustworthy fiduciaries. Enlisting an RIA to assist in a commercial real estate investment can not only ensure that you are taking the proper steps to diversify your assets, but also that you are using these assets to benefit your business and future financial investments. An RIA’s role is limited to what the client wants them to take charge of and control, making them the ideal consultant for high-earning investors.

What is a Registered Investment Advisor?

A registered investment advisor acts as an investment portfolio manager. Whether it be an individual or an entire firm, RIAs are responsible for managing a high-profile client’s investments and advises on behalf of their client’s best interests. Since RIAs are registered with the Securities and Exchange Commission (SEC), they are required to advise and work unconditionally for the client, regardless of their own interests, in exchange for a percentage of the client’s assets under management, or a flat fee.

RIA vs Broker-Dealer

RIAs and broker-dealers act in the same capacity as an investor’s buyer and seller of investment securities. However, since RIAs are registered with the SEC, they are inherently and unconditionally tied to the investor. While broker-dealers work for both their client and their brokerage firm, RIAs work only for their client. This also means that RIAs are compensated solely by the client.

What Can an RIA Do for my Commercial Real Estate Investments?

Just like with any investment, an RIA can advise commercial real estate investors on how best to manage their property profiles.

For first-time real estate investors, RIAs can advise on how to begin acquiring commercial real estate properties that are not only located in promising locations, but have opportunities for immediate return on investments through leasing and renting. Since commercial real estate can be complex in its illiquidity, RIAs can manage the barriers that may prevent the lay investor from putting money into the most desirable properties.

RIAs can also give investors options to diversify their investments for security and uphold their prestige in their market. For moderately experienced investors, this means creating a safety net for acquiring passive income without losing prominence in a particular industry. Some RIA firms use real estate syndications to invest on behalf of their high-net-worth clients in order to assist in collective alternative investment categories for the client’s portfolio.

RIAs work on your behalf to ensure that you’re getting the best out of your commercial property investment. Having a professional fiduciary on your side can only help expedite the real estate investment and diversification process. Reach out to an RIA as you explore your investment interests to ensure the viability and profitability of your investments.

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