In the late 1990s, property values fell, providing investors with new opportunities to acquire real estate without the hands-on management required of traditional ownership. The term is used to describe a class of assets that includes joint investments in public and private property. Investors contribute money to the fund to generate capital so that the money can be invested in real estate on an ongoing basis.
Private real estate funds, known as “off-shore” are investments used to buy property, build and develop buildings, generally established and managed by a single investor, Investment Company, or several investors.
A fund can provide investors with access to certain real estate opportunities that would not generally be available through traditional means, such as public real estate portfolios. Private real estate funds allow their investors to pool their resources to acquire larger and more complex real estate investments than are available through traditional means.
This kind of investment is not suitable for everyone. Investors (and their funds) are typically required to remain committed for several years; there may be lock-up periods lasting 12 years or more, during which you cannot sell your share of the fund. In addition, investors must provide a large initial capital commitment, with ongoing investments required over time. An initial investment could be a minimum of $250,000 or more.
Real Estate Investment Trust (REIT)
Real Estate Investment Trust: in the US & Canada, is a company that invests in properties or property loans, and sells shares in those investments similarly to a mutual fund. REITs are used to avoid income tax or to reduce the amount that has to be paid.
REITs present slightly different risks to those associated with investing in the real estate industry in general.
REIT shares often take a hit when interest rates go higher.
Investing your money in properties is always a way to look at said investment towards the future; whether you buy real estate to live in it, for vacation, or just as an investment, you can always do it through Seaport Credit Canada (applies only to residents and citizens) ask the specialists.
Visit www.seaportcredit.ca
