What You Need to Know if You are Considering Investing in Rental Properties

One of the most frequent comments we hear from clients is that they’d like to have rental properties for passive income. What’s better than money that you don’t have to work for? And who wouldn’t want a steady stream of income in retirement?

While we agree that real estate does have a place in a diversified portfolio, we also think it is important to understand what is truly involved in owning rental property. If you are considering going this route we encourage you to read on.

So many of our clients have mentioned to us their intention to have rental properties. They look at the current real estate market appreciation and assume that having a rental property will be easy income and the property will appreciate in value. But, here is what you can really expect-

  1. The property may not generate the income you expect
  2. It’s hard to get a return that is truly worth it
  3. For many smaller investors this rental real estate becomes a large percentage of your portfolio, and gives you substantial exposure to one asset class-real estate which has high highs and low lows, and
  4. Real estate is illiquid. You can’t sell it when you want to, unlike stocks or other investments that trade daily.

 

Learn more about how WealthChoice helps our clients generate the income they need to live the life they want.

Privacy Notice

We recognize the importance of protecting our clients’ privacy. We have policies to maintain the confidentiality and security of your nonpublic personal information. The following is designed to help you understand what information we collect from you and how we use that information to serve your account.

Categories of Information We May Collect

In the normal course of business, we may collect the following types of information:

  • Information you provide in the subscription documents and other forms (including name, address, social security number, date of birth, income and other financial-related information); and
  • Data about your transactions with us (such as the types of investments you have made and your account status).

 
How We Use Your Information That We Collect

Any and all nonpublic personal information that we receive with respect to our clients who are natural persons is not shared with nonaffiliated third parties which are not service providers to us without prior notice to, and consent of, such clients, unless otherwise required by law. In the normal course of business, we may disclose the kinds of nonpublic personal information listed above to nonaffiliated third-party service providers involved in servicing and administering products and services on our behalf. Our service providers include, but are not limited to, our administrator, our auditors and our legal advisor. Additionally, we may disclose such nonpublic personal information as required by law (such as to respond to a subpoena) or to satisfy a request from a regulator and/or to prevent fraud. Without limiting the foregoing, we may disclose nonpublic personal information about you to governmental entities and others in connection with meeting our obligations to prevent money laundering including, without limitation, the disclosure that may be required by the Uniting and Strengthening America Act by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 and the regulations promulgated thereunder. In addition, if we choose to dispose of our clients’ nonpublic personal information that we are not legally bound to maintain, we will do so in a manner that reasonably protects such information from unauthorized access. The same privacy policy also applies to former clients who are natural persons.

Confidentiality and Security

We restrict access to nonpublic personal information about our clients to those employees and agents who need to know that information to provide products and services to our clients. We maintain physical, electronic and procedural safeguards to protect our clients’ nonpublic personal information. We respect and value that you have entrusted us with your private financial information, and we will work diligently to maintain that trust. We are committed to preserving that trust by respecting your privacy as provided herein.