I have always tried to adopt the mindset outlined by Warren Buffet, “Diversification is protection against ignorance”. I find that the best way to reduce risk is to diversify. You cannot stay embedded in one stream of income and think that you're set for life. The minute you lose that source due to economic changes, layoffs, or other instances, it is time for diversification to take over and carry the burden of change. Some of my diversification interests include:
- Real Estate
- Precious Metals
- Crypto-currency and Art (to make it fun)
Much like diversifying financial investments, I have found that diversification is a powerful strategy to employ in my real estate career. I have seen successes from commercial, residential, rental, and vacation properties. Each property type presents an opportunity to be unique in design, financing, and renovating.