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Today, investors have endless opportunities to grow their portfolios and subsequent wealth. However, with so much to grab your attention, it can be difficult to separate the wheat from the chaff and determine which vehicles for success are right for you. Small business ownership and real estate investing are two obvious choices, but each has very different demands in terms of initial capital investment and ongoing management. 

Right now is a great time to buy businesses, especially for younger professionals looking to grow their wealth long-term. As the baby boomer generation retires (over 20% own their own business), they are looking for exit strategies to help support their retirement lifestyles.  This means younger investors have opportunities to purchase these businesses and start on the right foot as they begin their investment portfolios. 

However, more experienced investors may want to look into real estate for long-term passive income as they reach retirement. Real estate investments typically take less time to manage and can make the lifestyle you want in your 60s and 70s much more feasible. 

Legacy offers real estate listings as well as real estate + business offers, and we vet each of these carefully to ensure our limited partners receive the best investment opportunities. However, choosing between the two can be difficult, especially if you have the capital to go in either direction. 

Owning a business offers fast growth opportunities. 

Private business owners often take a bigger piece of the pie by investing in a limited partnership as opposed to a major commercial real estate syndicate. This can lead to faster growth for your portfolio, primarily if you are investing in an up-and-coming venture or location that is on its ascent. 

Business ownership takes time. 

Most seasoned real estate investors look for passive investments that can put their money to work without the required time and effort. On the other hand, owning a business will require some experience and management on your part, even if you are a silent partner or off-site owner. Eventually, ground floor issues will work their way to the top, which may not be ideal if you’re looking for something truly passive. 

Business ownership has more moving parts. 

Real estate investors spend most of their time in due diligence before the deal and then watch their investment grow. Business ownership requires not only careful selection based on the numbers and market conditions but on the staff in place, consumer trends, and unique geographic considerations that won’t affect the real estate value. However, this also offers greater value-add options for your investment over time. 

While real estate may be more passive and stable, it doesn’t allow for the flexibility and value-add opportunities that owning both real estate and business provide. Choosing the right option for your capital should be a decision made with your advisor and the team at Legacy Commercial Group. We guide our limited partners toward options that will truly suit their needs and are constantly updating our available properties to help you find the vehicle for success that’s right for you. 

To learn more about our real estate and business offerings, contact us today to schedule a consultation.