Why Your Financial Planner Doesn't Tell You About Real Estate

They don't understand it. Seriously!

How do I know this? My former real estate mentor was a financial planner making 200k a year and she told me.

Really! Most financial planners come up through the system learning about mutual funds and stocks and bonds and so when that's what you know, that's what you're going to recommend.

It's also easier.

If I was a financial planner (I'm not), I can get you to invest in a stock and most of my work is done, other than staying on top of the investment and checking in with you from time to time to see if your situation has changed and adjusting appropriately. But how do I tell a client to buy a rental property? What if they ask about insurance, or a mortgage, or how to find renters?

Most of them just don't know enough about it, or have the network that will provide them with passive real estate investment opportunities for their clients. There are some, but not many.

I don't want to imply financial advisors are lazy. My guess is 99% are not. They work hard and have their clients best intentions in mind, they just don't have real estate as a tool in their toolbox.

I always ask people who are interested in investing with us "What would your financial advisor say if they knew you wanted to invest your money in real estate?". For some, the financial advisor may be losing commissions and be a little biased. Anyways, it's a good question to ask your advisor.