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Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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Home Ownership and Investment Real Estate: Part 2 - Entrepreneurs

Millionaire entrepreneurs and business owners are bullish on home ownership and real estate. Learn more.

| BY Adriana Reyneri

Millionaire entrepreneurs and business owners –self-described risk takers and independent thinkers - see opportunities in the current real estate market, in contrast to millionaire investors from other walks of life, according to a study completed by Millionaire Corner over the first quarter of 2012.

Nearly 60 percent of Millionaire entrepreneurs and business owners surveyed in the first quarter agreed with the statement, “With the current state of the economy, I believe now is a good time to invest in real estate.”  This bullish attitude is not shared by a large majority of millionaires from other occupations – including doctors, lawyers, dentists, senior corporate executives and managers.  (Millionaire households have a net worth of $1 million to $5 million, not including primary residence.)

Entrepreneurs and business owners also have greater growth potential than millionaires from other occupations and are the most likely to accumulate a net worth of $25 million or more, according to our research. Entrepreneurs and business owners account for 29 percent of the roughly 107,000 U.S. investors with $25 million or more, and use real estate ownership as part of a long-term wealth building strategy.

This strategy is reflected in the primary piece of advice a millionaire business owner would give a young investor. The business owners are nearly twice as likely as millionaires from other occupations to advise a novice to buy a home while prices are low, according to a survey conducted by Millionaire Corner in March. About 38 percent of the business owners recommend buying a home in the current economic environment, compared to about 19 percent of millionaires from other occupations. Most millionaires – about 69 percent – would advise a beginning investor to first save for retirement through an employer-sponsored plan, such as a 401(k) – compared to 51 percent of business owners.

Not surprisingly, millionaire business owners and entrepreneurs are more likely than other millionaires to invest in property and to have substantial assets tied up in home ownership and commercial real estate.  Nearly all (98 percent) own their primary residence and 36 percent own a second home, compared to 29 percent of millionaires as a whole. Nineteen percent own undeveloped land and 27 percent own residential property, compared to 16 percent of all millionaires. Twelve percent own commercial rental property, compared to 4 percent of all millionaires, and 11 percent have invested in other types of real estate, compared to 8 percent of all millionaires.

Homeownership jumps to 100 percent for high net worth business owners and entrepreneurs – those with investable assets of $5 million up to $25 million. Fifty-seven percent owns a second home or vacation home, compared to 40 percent of millionaires as a whole. More than 40 percent of high net worth entrepreneurs and business owners own undeveloped land for a mean value of more than $1 million. Less than 19 percent of high net worth investors as a whole own undeveloped land, and the property has a mean value of $447,000.

More than one-third (36 percent) of high net worth entrepreneurs and business owners own residential rental property with  mean value of more than $1 million, compared to 21 percent of high net worth investors. Thirteen percent own commercial rental property with a mean value of $1.3 million, and 23 percent own other types of investment real estate. Nine percent of high net worth investors as a whole owns commercial rental property, which has a mean value of $803,000.