Craig Lundquist and Kristin Becker photo
Ideal Wealth Advisors logo

Craig Lundquist, MBA, ChFC®, CRPC®

VP of Wealth Management

craig.lundquist@lpl.com

651-773-2757

 

Kristin Becker

Senior Administrative Assistant

kristin.becker@lpl.com

651-773-2821

 

Ideal Wealth Advisors

Located at Ideal Credit Union

8499 Tamarack Road

Woodbury, MN 55125

 

CRPC conferred by College for Financial Planning

May/June 2025

Investing in Real Estate

Investing in Real Estate

If you're looking for another way to diversify* and grow your wealth, consider some of the most popular avenues in real estate investing.


Rental Properties
The beauty of rental properties lies in their ability to leverage financing. You can purchase a property with a mortgage and then benefit from cash flow and property appreciation over time. Just keep an eye on property management. Whether you manage it yourself or hire a firm, success often hinges on effective management.


Real Estate Investment Trusts (REITs)
REITs** may be attractive if you want real estate exposure without the headaches of direct ownership. A REIT owns, operates, or finances income-generating real estate across various property sectors. By investing in a REIT, you can enjoy regular income from dividends, as they must distribute at least 90% of their taxable income to shareholders. This is especially appealing if you want diversification* and liquidity, as REITs are traded on stock exchanges.


Real Estate Limited Partnerships (RELPs)
A limited partnership in real estate may appeal to you if you wish to take on a more active investment approach without being wholly responsible for property management. In this structure, you become a limited partner, contributing capital alongside a general partner who manages the investment. This arrangement may provide substantial returns, especially if the properties appreciate significantly. But know that while your liability is limited to your investment amount, you'll need to trust the general partner to make sound investment decisions.


Real Estate Mutual Funds
These funds invest in various real estate securities, including REITs and direct property investments. They provide an opportunity to hedge against specific sector risks and still engage in real estate without needing extensive knowledge or capital. It's a simple way to gain exposure to real estate while benefiting from the collective expertise of fund managers.


Exchange Traded Funds (ETFs)
Like mutual funds, ETFs are composed of different real estate stocks and REITs, but they trade on stock exchanges like individual stocks. This means they're more liquid and generally have lower fees. ETFs can be a strategic option for someone looking to diversify easily and flexibly. Each option has pros and cons, so consider your financial goals, risk tolerance, and involvement level before committing. Consult your financial professional to strategize the best approach for your unique situation.


*Diversification cannot eliminate the risk of investment losses. Any type of real estate investment can result in a loss of principal.
**Read the mutual fund ETF, REIT, or RELP prospectus or agreement and consider the investment objectives, risks, charges, and expenses before investing. Because the values of these investments fluctuate, redeemed shares or sale proceeds may be worth more or less than their investment. Past performance won't guarantee future results.

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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:

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