| REITsReal Estate FundsLLCs |
A practical entry into real estate investing.
A real estate fund is a select collection of various real estate holdings, often including Tenants In Common (TIC) or Delaware Statutory Trust (DST) structured properties. Investors purchase investment units in the fund and potentially receive a return on investment from the cash flow generated by the fund’s properties, less any management fees.
Many of the funds are assembled by large real estate providers who hold out a fractional interest of their TIC properties to include in their fund.
The potential benefits of investing in a real estate fund.
INVERNESS provides direct investment opportunities to funds and a select array of other real estate investments. Properties acquired by the diversified funds INVERNESS offers are subjected to rigorous due diligence and a thorough vetting process before acquisition.
Contact an INVERNESS Real Estate Consultant to learn more about your investment options.
Other important considerations.
Many of the funds are assembled by large real estate providers who hold out a fractional interest of their TIC properties to include in their fund.
The potential benefits of investing in a real estate fund.
- Real estate funds can be an attractive way to sample a particular real estate provider’s TIC business plan.
- Real Estate funds provide a simple means of diversifying an investment portfolio with real estate.
- The initial investment in a fund is substantially lower than a direct TIC or DST investment, (i.e. $25,000 for a fund instead of $100,000 for a DST or $250,000 for a TIC), allowing “beginner” investors to access these institutional-grade real estate opportunities.
- Investors can use money from qualified plans, such as 401(k), IRA, and SEP-IRA accounts, so the investment can be made with pre-tax dollars.
- As with any real estate investment, a fund can decline in value.
- Regular dividend payments may cease at any time.
INVERNESS provides direct investment opportunities to funds and a select array of other real estate investments. Properties acquired by the diversified funds INVERNESS offers are subjected to rigorous due diligence and a thorough vetting process before acquisition.
Contact an INVERNESS Real Estate Consultant to learn more about your investment options.
Other important considerations.
- Unlike REITs, these types of funds are not publicly registered or traded. Therefore, investment in a real estate fund is not particularly liquid.
- Please note that a 1031 exchange cannot be completed by investing in a fund.
- Before investing in a fund, be sure to speak with your tax or financial advisor to determine how it may impact your tax status and overall financial position.
Many of the funds are assembled by large real estate providers who hold out a fractional interest of their TIC properties to include in their fund.