Real estate is often touted as one of the smartest, safest, and soundest investments that anyone can make for long term wealth growth and stability. In fact, most millionaires are property owners in some shape or another, and there is a strong correlation between homeownership and wealth. Real estate investing has been and will continue to be a reliable pathway towards financial freedom. But real estate is also a real physical asset that you have to maintain and protect in order to keep and grow value. Here are three things that you can do to protect your real estate assets.

Use Insurance

The first and most important thing that you can do to protect your real estate assets is to use insurance. You should never, under any circumstances, own a property that is not covered by insurance. Insurance covers your properties against damage, destruction, natural events (although not all), and from theft and vandalism. If you are purchasing properties with the help of a loan (as you should) then the bank will require you to get insurance to approve your loan. But even when you buy in cash you need to insure your property to protect the value against disaster.

Put it in a Trust

Another way that you can protect your real estate assets is by placing your real estate in a trust. Insurance protects your property from physical damage and destruction, putting real estate in a trust protects your property from taxes when you die. By placing your real estate in a trust that goes to your children or heirs, you make things easier for them. Trusts avoid probate, which is a lengthy process for your heirs. Probate hearings are also public, whereas trusts can be private, keeping your assets out of view from unwanted eyes.

Stay Up on Maintenance

The final thing that you must do to protect your real estate assets is to stay up to date on maintenance. When you fall behind on maintenance and needed repairs, eventually your properties fall into disrepair. This can devastate your property value, and you could lose everything you put into that property. Make sure that you maintain your existing properties to keep the values high for your long-term success.

Real estate is a great investment to make for long term wealth growth. But as a physical object, your properties need protection. Take these three steps to keep your real estate assets safe and secure.

Check out this article on how to increase the chances of a quick home sale!