Diversify Your Investment Portfolio With Real Estate
Saint Investment Group reduces the risk and increases the stability of investing in real estate. For investors seeking diversification of their portfolios, secured real estate funds offered by Saint Investment Group provide long-term finance income-producing real estate without needing to be an expert in the real estate industry. Investing in individual real estate deals one by one can significantly increase the risks to your capital. We reduce your downside exposure by pooling a diverse selection of properties that are balanced for quality preferred returns in relation to risk.
A Safer Way To Invest In Real Estate
Investing in real estate deals by yourself may have the potential for sizable returns, but getting the details right requires a high level of knowledge and investing strategies about the local market and regulatory environment. An error in the smallest of details on a real estate deal can wipe out all real estate funds investments, and sometimes the entire potential investment can be lost.
Putting your money in a secured real estate fund from Saint Investment Group ensures each real estate property you invest in has been thoroughly vetted by experts who evaluate properties every day. The fact is, knowing the nuances of real estate trends and local markets provides a huge advantage for individual investors, and investing in a secured real estate crowdfunding makes it possible for you to have this level of intel backing up your capital.
What Properties Do Saint Investment Group Real Estate Funds Hold?
Saint Investment Group carefully selects real estate investment opportunities from various property types, each chosen to balance overall risk and ensure long-term stability for our funds. The key to real estate investing the secure way is leveraging expert analysis, which we bring to the table for every property we acquire.
We carefully choose our investments in asset classes such as:
Retail Space
Healthcare, grocery, and alternative investments — like store niches — are some of the retail space investments we make. We maintain a pulse on which segments of retail make the most stable tenants and work diligently to manage each property for dependable cash flow.
Office Space
At times, offices and companies can become more volatile when markets fluctuate. However, there are excellent investment opportunities in office properties in a balanced portfolio. Some markets rebound better than others, as we’ve seen in the wake of the pandemic. Vacancy rates stabilized later at very different paces, showing which markets can be counted on for stability and upside.
Industrial & Warehouse Property
This has been a top-performing property type throughout the economic uncertainty of the past few years. E-commerce is booming, and we’ve seen a significant shortage of available space for these operators. We’re always seeking the best industrial and warehouse space opportunities to include in our real estate mutual funds.
Multifamily Residential
Multifamily properties remain a strong performer for real estate secured funds, with more growth projected as we see the economy continue to improve.
Are Private Real Estate Investments For You?
If you see the value in real estate investing but lack the deep knowledge needed to effectively minimize the risks, real estate secured funds are a smart option. Compared with an individual property investment, a private equity real estate fund puts an experienced fund manager in charge, reducing risks and stabilizing passive income streams.
REITs vs. Real Estate Funds
Unlike a real estate secured fund, a REIT is a corporation, trust, or association that directly buys real estate and is traded in pieces like shares of stock. Real estate investment fund structures are different, often with monthly income payments that are a fixed percentage of the total capital invested. Also, fund investors in real estate funds have the option to reinvest their dividend payments instead of taking them as sponsor compensation.
Are Real Estate Funds Securities?
Despite the somewhat confusing name, real estate funds aren’t technically securities. For those wanting to invest in real-estate-backed securities, Real Estate Investment Trusts (REITs) are one example. Remember, the downsides of securities apply to different types of REITs (Real Estate Investment Trusts), and the possibility of losing the entire investment is a worst–case possibility.
Is Investing In Real Estate Riskier Than Stocks?
Unlike real estate, the prices of stocks are incredibly volatile, with wild swings in value happening throughout the course of a single day at times. With real estate, pricing often moves much more slowly, which can make real estate investment far less risky from a value standpoint. That said, there are details of real estate assets that can also present significant risks when done individually and without the help of knowledgeable experts.
Remember, not all types of real estate funds are created equally—each depends on the management team, market factors, management systems, and leasing strategies. Secured US real estate investment funds offered by Saint Investment Group can provide a decreased risk for real estate investors by pooling funds across various assets, balanced with stable income streams as the goal.
Investment Strategies of Real Estate Funds
By pooling their resources, investors in real estate funds are able to gain exposure to a diverse collection of real estate holdings without having to deal with the responsibilities of property management. But not every real estate company is the same. Mutual funds’ success and risk profiles can vary widely due to the funds’ varying investment methods. Common real estate fund business methods include the following:
- Core Strategy: Funds that follow the core strategy typically invest in stabilized, income-producing properties in prime locations. These properties generate steady rental income and are expected to appreciate gradually over time. Core funds aim for stable, low-risk returns and are suitable for conservative investors seeking stable income.
- Value-Add Strategy: Funds that follow the value-add strategy invest in properties that require some form of renovation, repositioning, or lease-up to increase their value. These properties typically have lower occupancy rates, higher vacancy, and lower rental rates. Value-add funds aim to create value by improving the property’s physical condition, upgrading amenities, or repositioning the property to a higher-quality tenant base. Value-add funds carry higher risk but also offer the potential for higher returns.
- Opportunistic Strategy: Funds that follow the opportunistic strategy invest in high-risk, high-reward properties that require significant capital investment and may take several years to realize returns. These properties may be distressed, underperforming, or in need of substantial redevelopment. Opportunistic funds aim to create value by taking advantage of market inefficiencies, unlocking hidden value, or generating alpha through active management. Opportunistic funds carry the highest risk but also offer the potential for the highest returns.
Investors should conduct a comprehensive analysis of the investment strategy of a real estate fund before entrusting capital to the fund. There is a unique risk-reward balance associated with each strategy; therefore, investors need to choose a strategy that is suitable for their investment goals, level of comfort with risk, and time horizon.
Real Estate Funds Provide Passive Income
Much like traditional rental property investment, real estate secured funds can provide investors with a steady, dependable stream of passive income, often with far fewer risks involved. Rather than managing properties individually and dealing with tenants directly, real estate investment managers handle all of the details from property purchases to maintenance to rent collection. Income from real estate funds is far more passive in nature than nearly any other type of real estate investment, making them an excellent choice for investors looking to diversify with less risk.
If you’re ready to get started investing in commercial property and investing in real estate more securely, Saint Investment Group is here to guide you every step of the way. Our seasoned real estate investment experts design a stable real estate investment structure that provides you passive income for the long term. Contact our team today for a free investment consultation. Find out the difference a real estate fund from Saint Investment Group can make in your portfolio.
Frequently Asked Questions:
What are real estate funds?
Real estate funds, or real estate investment funds (REIFs), are investment products that collect money from numerous investors and invest it in a diversified real estate portfolio.
What types of real estate funds are available?
Real estate funds can be structured as publicly-traded or private investment vehicles, and may offer different levels of liquidity, risk, and return. Publicly-traded real estate funds, such as real estate investment trusts (REITs), are traded on major stock exchanges and offer investors the ability to buy and sell shares at any time, while private real estate funds are typically offered to accredited investors and may have lock-up periods or limited redemption options.
What are the benefits of investing in real estate funds?
Investing in real estate funds can offer several benefits, including diversification, access to professional management, potentially higher returns than traditional fixed-income investments, and tax advantages such as depreciation deductions and pass-through income.
What are the risks associated with investing in real estate funds?
There are hazards associated with real estate funds, including market volatility, liquidity issues, and the possibility of high fees. Moreover, variations in interest rates, economic conditions, and real estate market trends may impact the performance of real estate funds.
How do I choose a real estate fund to invest in?
When selecting a real estate fund, consider aspects like the fund’s investment plan, track record, fees, and management team. Before making any investment choices, it is also advisable to perform comprehensive due diligence and confer with experienced experts.