Financial expert explains real estate equity funds
There are two types of real estate equity funds: private and pubic
InvestigateTV - If you’re looking to invest some money into real estate, a financial expert recommended you consider equity funds.
Real estate equity are professionally managed funds that you can purchase. It involves buying stakes in private real estate companies.
Danetha Doe, the creator of the website Money & Mimosas, said there are two kinds of real estate equity funds: private and public.
Public equity funds, or real estate investment trusts (REITs), are more common.
“There are platforms that can make it easy to figure out exactly what you’re investing in,” Doe explained. “Some of those platforms are Fundrise, RealtyMogul. They have great educational articles and webinars where you can learn a little bit more about these funds and what exactly you’re putting your money into.”
Private equity funds, on the other hand, are very nuanced and even tricky, Doe said. They also require that you be an accredited investor.
“With those types of funds, you do want to work with a professional, whether it’s your tax accountants or a wealth manager, in order to help navigate that space,” Doe said.
Doe said both private equity and public equity real estate funds are long-term plays, meaning it will take years before you really start seeing a return on your investment.
Doe added it’s helpful to talk to a financial advisor when considering any investment, even a 401k, so you can understand exactly what you’re putting your money into and what to expect.
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