Traditionally, real estate investing has been considered an alternative asset class. That changed, however, in 2016 when the Global Industry Classification System (GICS) was revised to give real estate its own asset classification.
Just like any investment portfolio, a real estate portfolio needs to be diversified to protect against downside risk. By investing in a wide range of properties, in different geographic areas and using a selection of investment structures, real estate investors can optimize their yield while reducing the risk of a market downturn.
New real estate investors are correctly advised to seek out a mentor to help them learn the business. Someone with experience can help the newcomer think through issues and bring up important considerations that might not be obvious.