Real Estate Management
The guiding philosophy of First Point Financial Management & Trust Services Team is to prudently manage the assets entrusted to us. The foundation of our investment philosophy emphasizes reducing risk through diversification while maximizing long-term, after-tax total return. We accomplish this goal through an investment strategy that focuses on the unique risk tolerance and return objectives of each individual client.
One investment strategy may include the ownership of real estate. Real estate as part of a diversified investment plan can offer several advantages: long-term financial security through steady income and as a hedge against inflation through capital appreciation of the property over time.
Although the Bank as fiduciary does not normally seek opportunities to make investments in real estate, the Bank will consider such investments when it is appropriate. It is the policy of the Bank to have real estate inspected and appraised before the investment is made. The Bank will retain investment quality real estate if it is prudent for the client or beneficiary. However, if the yield on the property falls significantly below other investment returns and the potential for appreciation is diminished, the Bank may consider a sale.
In providing qualified real estate management, most will be managed by the Bank. However, in some cases, due to the location or the nature of the property, the Bank
may employ a third party manager. If the settlor, beneficiary or a co-trustee can provide the expertise in management, the Bank may allow them to take an active role in the management of the property. The Bank will monitor all actions of the manager to comply with regulations.
Real estate can be a significant allocation of the portfolio. Many key considerations are reviewed in determining whether to buy, retain or sell real estate for an account. We work closely with our clients and families to administer an estate plan both during and after lifetime.
You have spent years building and safeguarding your investments. We are here to partner with you as a trusted advisor to assist with your unique situation. An estate plan can be designed to fulfill your wishes in handling real estate. We can help educate you and your family about trusts and carry out your estate plan as executor and trustee.
To schedule an appointment regarding your financial planning needs, please contact Cindy Bourke.