Having your wealth spread across multiple properties is a form of diversification.

-Mexico citizen, born and raised in Colorado, and over the past few years I’ve been actively investing in Mexican real estate — mostly in presale condos and long-term or vacation rental markets like Guadalajara, Cancún, and Lake Chapala.I originally started by looking for affordable, well-located properties for personal use, but as I dug deeper, I realized there were real opportunities for long-term appreciation, rental income, and geographic diversification — often with as little as $20–30k down.The process isn’t as complicated as people think, but there are definitely key things to understand, including:How foreigners can legally own property in Mexico (especially in restricted zones like the coast),How presale contracts and developer relationships work,What kinds of rental strategies are viable in different markets (Airbnb, mid-term, or traditional long-term),Currency and exchange rate considerations, title safety, and banking between the U.S. and Mexico.One major advantage of presale in Mexico is that many developers offer in-house, interest-free financing during construction, allowing buyers to spread out payments over 24–36 months — without involving a bank or mortgage process.

Many investors now approach STRs less for massive monthly cash flow and more for tax benefits, appreciation, and portfolio diversification.

Considering the greater liquidity, professional management, greater disclosure and compliance, opportunity for management to borrow at rates much lower than private equity real estate, and more relevant and reliable information available, as well as diversification, it looks VERY attractive.  

I use diversification to mitigate everything from climate impact to government regulation to local economies. 

Also don't overlook TSM index funds for truly passive potential gains and diversification. 

I invest in the Midwest where properties are often under $150k and cash flow stronger, so sometimes diversification outside your local market can help speed things up.

Most of us on BiggerPockets love real estate because it gives us control and steady cash flow. But if your portfolio is only tied to rental properties, you’re essentially betting on one sector—and that can be risky.
...

. • Diversification: By leveraging capital, investors can work multiple loans in parallel instead of tying up cash in just one asset. 

Since minerals are deeded real property, they qualify as “like-kind.”That opens up a different lane for investors  who are tired of managing their properties and for any agents that are up against the 1031 clock, you could roll your investment into producing mineral interests.This could lead to diversification in your portfolio, a hedge in inflation, and a truly passive investment.Has anyone here actually done a 1031 into something other than real estate (like farmland, minerals, etc.)?