Diversification is a core principle of portfolio management to minimize risk and achieve a higher overall blended return. Modern Portfolio Theory advocates a 10% - 20% allocation into hard assets such as real estate as a means to increase returns while also lowering risk. However, the principle of diversification doesn’t stop at the point of a real estate allocation; it also applies within the real estate allocation itself. Diversifying within a real estate portfolio is easily achievable but it requires an understanding of the different “levers” you can pull to generate it. In this article, we explore those levers and highlight the various ways to pull them to assemble a well-diversified real estate portfolio.