Christopher Linkas says that the biggest mistake most people make in regards to investing in real estate is by becoming the owner of a house they rent out to others. This is a highly risky endeavor for a number of reasons. First, too much money is tied up in one asset. Second, unless you own the home outright your income stream will be low because you’re making mortgage payments. Other issues include a lack of economy of scale because you have to pay out for really huge expenses like a new roof or driveway which are only used by a single tenant.
He says that he advises people to instead find a good passively managed mutual fund that invests in commercial real estate and stick with that instead. Christopher Linkas says this will give you a far better-diversified portfolio of properties and will provide a steady flow of income via dividends. One thing he also likes about this approach is that it is grounded in reason. Tenants in commercial real estate make rational decisions for where they rent space and you can benefit from their decisions by going this route instead of buying a single-family home.
While Christopher Linkas is American he has lived in London, England, for the past six years. He works for an international investment firm and manages their commercial real estate investment decisions in Europe and the UK. He has been this company’s European head of credit since November 2012 and leads a team of over 20 investment professionals.
Beyond managing investment properties, Christopher Linkas also invests in other assets such as non-performing loans, corporate loans, corporate securities, renewable, and shipping. Before moving to London he had been working in New York City where he was an executive at RER Financial Group as well as Goldman Sachs.
As someone whose investment advice is often sought Christopher Linkas often tells younger people to start investing for retirement as early as possible. He has explained how compound interest works and how much a dollar invested now will grow compared to one invested 10, 20, 30 years later.