“Real estate offers a tangible path to growth, whether the goal is to hedge against inflation or build a multi-generational legacy,” says Donna Mullins, senior private banker at Arvest Bank – Central Oklahoma. As a private banker, Mullins provides concierge‐level financial support to many busy Oklahoma professionals, often connecting clients with teams that can support their business endeavors, including finding partners and securing financing.
Aligning with Your Financial Strategy
Although real estate offers significant growth potential, success depends on how well the property fits within an overall financial strategy. Mullins explains that becoming a savvy investor begins with understanding how physical assets work with a client’s portfolio. “When assessing a real estate opportunity, there are many key factors to consider, such as cash flow potential, property condition and investment time horizon,” she says.
“Evaluating these with a team helps investors determine which properties best support their financial goals.” Real estate can provide a strong rate of return compared to other investments, such as employer-sponsored 401(k) plans. Just like with any major investment, careful research is essential, says Mullins. She recommends consulting a trusted financial advisor to review your portfolio and determine how real estate fits your broader financial goals.
Finding the Right Property
While property often requires significant upfront investment, it can offer long-term benefits. Mullins notes that many investors acquire residential or commercial rental properties to generate income and hedge against inflation. Before investing, it is important to consider the pros and cons of each property type, including risks such as vacancies, market fluctuations and management. “While rental homes or apartments may seem more manageable than office spaces or retail buildings, the right team and resources can make either option successful,” she adds.
Choosing Your Level of Involvement
Achieving financial independence, especially in retirement, is a key goal for many investors. There are various ways to generate income through real estate, depending on how involved you want to be, Mullins says. For those who don’t mind sweat equity, investors can purchase undervalued properties, renovate them, and either rent them or sell them for a profit. “Strategic investing, such as buying in emerging neighborhoods or short-term rental markets, allows individuals to maximize returns without immense starting capital,” she explains. For those who prefer a less hands-on approach, real estate investment trusts (REITs) and exchange-traded funds (ETFs) offer alternatives to direct property ownership. REITs own and manage rental properties such as apartments, office buildings, and shopping centers, distributing income to shareholders through dividends. ETFs provide professionally managed, diversified stock portfolios that may include REITs.
Real estate, REITs, and ETFs may have different tax implications for high earners. Consult a trusted tax advisor to understand how these investments could affect your tax liability. “While both options can offer reasonable returns, thorough research and financial guidance are crucial before making an investment decision,” Mullins adds.
Developing Your Roadmap
Acquiring or investing in real estate can be a complex process, but when done carefully, it can yield significant financial rewards. Assess your current and future financial plans, consult a trusted financial advisor and conduct thorough research before committing to any investment. A private banker can help you build the right team for your plans.
Services provided by Arvest Private Banking. Qualifications required, see a dedicated Private Banker for more details. Donna Mullins, NMLS# #1209510. Member FDIC. Equal Housing Lender.
Investment products and services provided by Arvest Investments, Inc., doing business as Arvest Wealth Management,
member FINRA/SIPC, an SEC-registered investment adviser and a subsidiary of Arvest Bank.
Investments and Insurance Products: Not a Deposit | Not Guaranteed by the Bank or its Affiliates | Not FDIC Insured |
Not Insured by Any Federal Government Agency | May Go Down in Value
