As proven and experienced investors, we often receive questions from investors, especially those new to the commercial real estate business. More often than not, they already have a game plan in mind, and are seeking more reassurance than guidance. And more often than not, that game plan is the same: to go all in on one deal.
While it may be tempting to put all of or the majority of your money into one great opportunity, this is never a good idea. Investing shouldn’t be like gambling – the goal should be to strengthen your portfolio, not to chase an adrenaline rush. A strong portfolio grows gradually and is diverse, because diversification equates to safety.
For example: if you have $100,000 saved up to invest, that amount should never go into one real estate deal or one stock. From a real estate perspective, we would recommend that amount be allocated over 10 projects, at $10,000 per project. In fact, at Premier, we recommend that no one investor invest over 20% of any project’s value. This is for the investor’s own protection and ensures the diversification of their portfolio.
We thank you for your interest in our company, our team, and our projects. The Principals at Premier have been investing successfully for almost 40 years. We look forward to passing this success on to you.
Spencer Pisczak,
Co-Founder and CEO, Premier Crowdfunding
President, Premier Development Partners