Shop Talk: Bill Passo on RIAs and private-equity real estate

Why are so many wealth advisers reticent to move beyond the two-dimensional stock and bond portfolio model and into real assets — specifically real estate? Why is there such widespread aversion to illiquidity, despite the prospects of reaping the so-called illiquidity premium? What are the advantages to direct ownership of real estate versus the strict use of listed REITs? And where are the sweet spots in the real estate market at this stage? We ask Bill Passo, founder and CEO of the Passco Companies, a real estate operating company that has acquired, managed and developed more than $3 billion in real estate investments with properties in 21 states. (10/2016)