FREQUENTLY ASKED QUESTIONS
Long-term historical analysis shows that investments in real estate, when compared with public equities markets and U.S. fixed income instruments, have experienced relatively lower volatility while earning higher risk-adjusted returns. Commercial real estate (CRE) as an asset class, provides investors with refuge from the day-to-day ups and downs of market speculation, political turmoil, and the whims of human psychology, due to its unique quality of being backed by a hard tangible asset with intrinsic value. Additionally, real estate investment advantages include cash flow, appreciation, equity increase, and tax benefits.
Yes, investors can invest with self directed IRA as long as the investor is the custodian.
A K-1 is an Internal Revenue Service (IRS) tax form issued annually for an investment in partnership interests. The purpose of the Schedule K-1 is to report each partner’s share of the partnership’s earnings, losses, deductions, and credits. As a partner of the LLC, each investor will receive an annual K-1 that they can include into their personal tax returns.
Yes, out of state investors can invest. Additionally, out of country investors can invest as well, provided they have a U.S Tax ID number and a U.S bank account.
While avoiding investment risk is ideal, the reality is that risk is a natural part of any investment and commercial real estate is no exception. Below are some common risks investors take in account when investing in real estate. Leverage, Bad Tenants, Market Changes, Bad Construction, Liquidity, Property Management and Natural Disasters. These risks can be reduced with strategic planning, market experience, and upfront due diligence.