Stop Chasing Market Highs: How Real Estate Investors Build Wealth Without Unnecessary Risk

By Amanda Neely, CFP^®

Markets rise. Markets fall. But savvy investors build systems that keep working, no matter which direction the headlines go.

It’s 2025, and something feels eerily familiar. The stock market continues its upward climb, fueled in part by policy decisions designed to keep confidence high. But under the surface? Cracks are beginning to show. Housing inventory is creeping up. Buyer activity is cooling. According to Redfin, the typical home is now spending more days on the market than at any point since 2015.

If you’ve been investing in real estate long enough, you might be flashing back to 2007. And while history doesn’t repeat exactly, it does rhyme. The question is: how are you preparing?

Traditional financial advice often encourages diversification. But what if you’re heavily invested in real estate and prefer control over guesswork?

The volatility of Wall Street isn’t just a matter of risk; it’s a matter of timing. A portfolio that drops 20% right when you need to tap it for income or to replace HVAC can throw off your entire plan. That’s why more investors are turning to alternatives that emphasize stability, control, and liquidity … especially in uncertain times.

#1 Start with cash flow and liquidity.

Real estate investors often live in the land of “lumpy” income: months with big wins followed by dry spells. One increasingly popular strategy is adopting a business-style approach to real estate finances by creating a “Revenue Allocation System” (inspired by the Profit First model).

Here’s how it works: Each time a rental income check or flip proceeds come in, you allocate funds across distinct accounts: Profit, Owner’s Compensation, Taxes, and Operating Expenses. This reduces financial stress, smooths income, and ensures you’re setting aside funds for future opportunities or downturns. The system isn’t about budgeting. It’s about building habits that honor the unpredictable nature of the real estate game.

In 2025, it’s not enough to just “save for a rainy day.” Investors need liquidity that’s both accessible and resilient. Many are parking cash in high-yield savings, short-term treasuries, and fixed annuities. These tools that may not make headlines, but that quietly preserve principal while offering modest growth.

Others are tapping into high-cash-value, dividend-paying whole life insurance strategies designed to maintain value while still offering access to capital when needed. Insurance is never an investment. Insurance-based savings are about keeping your money ready for the next deal, not locked behind a brokerage login and market timing.

#2 Plan for the long term.

Wealthy investors aren’t just building for today. They’re planning for tomorrow’s storms. In place of traditional retirement accounts that could be worth 20% less during a downturn (or even during 1 month like April 2025), they’re layering in tools like:

• Deferred income annuities to lock in predictable income later in life
• Laddered bond portfolios or dividend-generating alternatives
• Private placements or niche investments that align with their values and offer stable, uncorrelated returns

The through-line? They’re opting for tools that function independently of the stock market but still diversify outside of real estate. If you read between the lines and ask questions at this year’s Summit, you’re likely to see more of this than if you stay surface level.

#3 Consider diversifying within your strengths.

Your investing strategy should reflect what you actually know, and what you want your future to feel like. A sample diversified approach might look like:

• 50% Real estate (direct ownership, partnerships, or development)
• 20% Cash reserves in stable, liquid vehicles
• 20% Long-term growth options 
• 10% Flex capital (short-term opportunities, experimental ventures)

This isn’t a rigid formula. It’s a framework that helps you build resilience while maintaining optionality. (Alignment of strategy with your uniqueness is much of what I’m going to be talking about at the Summit!)

When other investors are chasing returns, reducing leverage, or panicking over market dips, those with a steady foundation move forward with confidence. They make wiser decisions. They keep momentum. They sleep better. And ultimately, they come out ahead. In times like these, your ability to stay grounded may be your greatest asset. Let others chase the highs. You know the real wealth is built in the quiet, steady moves.