Is Your Portfolio Truly Diversified? Why Real Estate Should Be in Your Investment Strategy

When markets shift, where does your portfolio stand? If your wealth is heavily concentrated in one asset class—like a single stock or your company shares—you might be more vulnerable than you think. In this week's real estate market update, Zaid Hanna of Real Estate 38 breaks down how top investors diversify their wealth, and why real estate plays a crucial role in long-term financial stability.

The Problem: One Bucket Doesn’t Build a Fortress

“Zaid, I work for this company and my stock has gone up a lot... but most of my net worth is tied to that one stock.”

Sound familiar? This is a conversation Zaid hears often—especially among high earners with substantial exposure to tech company equities. While growth is exciting, it comes with risk. A market drop—like the recent 20% dip in the S&P 500—can drastically wipe out paper wealth if you're not diversified.

The Smart Portfolio: Four Buckets of Wealth

Zaid shares insights from a national network of high-net-worth individuals who’ve exited companies or built successful careers. Their portfolios? Balanced across four key asset classes:

• 25% in Equities (public stocks like Google, Apple, Coca-Cola)

• 25% in Private Equity (non-public companies, startups, venture capital)

• 25% in Real Estate (income-generating properties, multifamily assets)

• 25% in Liquid or Alternative Assets (crypto, gold, money markets)

This model provides both stability and flexibility. If one sector takes a hit, the others can help balance the losses.

Why Real Estate is Essential to Diversification

Real estate doesn’t just build equity—it builds income and provides tax benefits. Zaid emphasizes that owning real estate—especially income-producing properties like fourplexes—can be a game-changer.

Here’s a real-world scenario he unpacks:

• Purchase price: $1.5M–$2M for a fourplex in the Bay Area

• Monthly rental income: $10,000–$12,000

• Long-term passive income: $4,000–$5,000/month (after expenses and reserves)

Over time, that income could fully replace your day job—or supplement it during retirement. And thanks to depreciation and tax shelter strategies, these properties can offset income and reduce your tax liability.

Where Should You Invest?

The answer depends on your goals, risk tolerance, and current financial picture. Zaid and his team walk clients through personalized investment strategies, evaluating markets like:

• Bay Area

• Sacramento

• Nevada, Arizona, Texas, Florida, the Carolinas

Whether you're looking for cash flow, appreciation, or a combination of both, there’s a smart real estate play waiting to be uncovered.

Ready to Diversify?

If you’ve been thinking about expanding your portfolio beyond stocks—or you’re simply unsure how real estate fits into your long-term goals—Zaid is here to help.

“I’ve done many of these investments personally, and I still hold real estate as a big part of my portfolio. I’d be happy to walk you through your options.”

📞 Call Zaid Hanna at (408) 515-1613 to schedule a confidential strategy session.