Integrated Asset Management (IAM) is one of the latest innovations in the financial planning industry, which integrates real estate investing into an overall financial plan.
So to discuss the changing environment in financial planning, we want to share our expertise as a real estate wholesaler, while reviewing Brent Gleeson’s article in Forbes.
Trend Toward Real Estate Investing
Investment trends have been moving toward real estate investing for several years. In 2015, real estate was the #1 investment choice of Americans. Likewise, institutional investors have been increasing their allocation of real estate to generate higher profits and protect their portfolios from volatility and inflation.
As a result of the upward trend of retail and institutional investors to invest in real estate, increasing numbers of financial planners have begun incorporating real estate into their financial plans.
This type of financial planning, which incorporates real estate into an overall financial plan, is Integrated Asset Management (IAM).
Integrated Asset Management (IAM)
In years past, there wasn’t much communication between financial planners and real estate experts, since financial planners haven’t traditionally viewed real estate as a necessary element of a diversified portfolio.
The average CPA doesn’t receive formal training in the real estate market, or in the management of real estate assets. Part of this is because keeping up with the real estate market requires a significant amount of time.
However, the demand for real estate is much higher today. With interest rates hovering around the lowest levels in recent history, more and more people are viewing real estate as a viable investment option.
In fact, it is estimated that over 30 million Americans have invested in both commercial and residential real estate. Furthermore, the Bankrate Financial Security Index survey that was released earlier this year (2016) found that approximately 54 million Americans preferred to invest money not needed over the next 10 years into real estate rather than stocks or bonds.
For these reasons, a new branch of financial planning called Integrated Asset Management (IAM) is emerging. The idea isn’t complicated. Integrated Asset Management integrates real estate investing into an overall financial plan. In some cases, financial planners and real estate experts share the same office to provide clients with in-depth information about creating a diversified portfolio.
In his article, Brent Gleeson quotes from an interview with Andrew Canter, CEO of Canter Companies and a leader in IAM.
“No one is saying that financial advisors need to develop a whole new area of expertise; that’s just not realistic. But putting financial advisors and real estate experts under the same roof is, and that is starting to happen.”
IAM Benefits Clients
At the end of the day, integrating real estate investing into a traditional financial plan benefits clients.
Increasing numbers of investors are adding real estate to their overall investment strategy. So, having guidance from professional financial planners who have a balanced approach to investing, incorporating real estate into the overall plan, is a benefit to their clients.
Graystone Investment Group
Graystone Investment Group is an experienced Investment Group, helping clients generate profits with real estate investments that can help to manage volatility and protect against inflation.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.