Who can invest in commercial real estate investment funds?
As markets swing up and down and the world’s economic stability remains unclear, many people are looking for investments that give them steady and reliable returns. Commercial real estate investment funds have become an attractive alternative form of investment as they often give high returns on investment tied to a tangible asset of real property.
For those living in the United States, these funds can allow for more diverse holdings than other investment types. The stock market, for instance, is viable to major swings up and down, which can mean that every year’s returns can be different. Putting money in a bank account on the other hand, which can come with more security, will mean very few returns in the form of interest.
Real estate is a tangible property, which means that in the case of default there are assets to liquidate. This can add a layer of security to investments as it means that most investors will receive a payout even if the economy weakens. To compare this to investing in the stock market, if and when the stock market dips, any losses won’t be recouped. For these investors, they can leave their money where it is and hope that the market will go back up, but this is always a gamble.
A great way for new investors to get involved with real estate funds is to consider using retirement accounts that you control, such as an IRA or 401k. While retirement accounts offer funds to invest in, these can be largely unpredictable, and are often on such a massive scale that you will get little to no understanding of what each fund does. With a real estate investment fund on the other hand, investors will have updates – and payouts – throughout the year, feeling secure that their money is working for them.