We love investing in real estate.
Why?
Real estate has unique advantages over many other investment options that we feel make it one of the most attractive risk adjusted investments out there.
Andrew Carnegie once said:
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
And Franklin D. Roosevelt shared this belief when he noted:
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
A few of the advantages of investing in commercial real estate include:
Earning consistent and predictable cash flow
The ability to leverage an asset and increase your return on investment
Being able to control and grow the value of the asset without relying on speculative market appreciation
Many tax advantages including depreciation which reduces taxable income
Our focus is on investments that provide consistent income and where we can grow the net operating income through value-add measures, increasing revenue and decreasing expenses.
We also believe that long term success is achieved through diversification of investments.
Ray Dalio recently shared in an article:
“Diversification can improve your expected return-risk ratio by more than anything else you can do. Diversifying well is a matter of knowing how to reduce your expected risk by more than you reduce your expected return.”
To achieve significant diversification without compromising returns, we invest into the equity of institutional quality commercial real estate and become a partial owner, and repeating this time and time again allowing us to spread our investment across regions, operating partners and asset classes.
Over the years we have invested in over a dozen different real asset classes including apartments, mobile home parks, self-storage, retail, office and student housing. We’ve invested in over 100 properties and created over 40 real estate partnerships with investors.
So, how are our investments performing?
We currently have active investments in 28 commercial real estate deals, all with a focus on providing passive income and growth. The below chart shows a summary of the performance: