• Ian Ippolito

How Mere Accredited Investors Can Access Elusive Core Real Estate


Core has outperformed other strategies over the long run, yet is glaringly absent from the crowdfunding platforms. The Private Investor Club fund-of-funds will change that.

(Disclaimer: I'm not a financial advisor or attorney. Consult your own financial and/or legal advisors before making any investment or legal decisions.)

Elusive core investments

Core investments are highly recommended by real estate investment advisors. They are less risky, less volatile and have historically outperformed other strategies over the long run. Yet they are almost impossible-to-find on the crowdfunding platforms.

So saavy investors have to find ways to go direct.

One of the best performing is the BlackRock US Core Property Fund. It's outperformed the core index (NFI-ODCE) over the last 1, 3, 5 and 7 years. It's well diversified with $6.4 billion in assets across many asset type (apartments, central business development office, necessity retail, distribution warehouse) and across primary and coastal markets. And leverage is a low 26.8% which is typical for a low risk, core strategy fund (25% average).

The biggest problem is that it requires a $1 million minimum investment, which puts it out of reach of most accredited investors. However, there's an alternative for members of the private investor club. We are creating a fund of funds which will invest in the top core real estate funds with just a $50,000 minimum. It will have no sales load/commission and a bare-bones, best in class management fee. It will be administered and audited by a 3rd party to remove conflicts of interest. And it will have a one year lockup with quarterly redemptions after that. Already, 22 investors have expressed interest with a little over $1 million. Once we get to $3 million, the fund can be created.

If you want to express interest and be notified of the latest developments, please contact me here. (Note, participation is limited to verified members of the private investor club. Membership is free but requires verification that the candidate has no connections to platforms or sponsors, other than as a customer).

Also, if you want more information on the fund of funds, the BlackRock US Core Property Fund, or core funds in general, here's a detailed overview:

#core #coreplus #streitwise

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About Ian Ippolito
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Ian Ippolito is an investor and serial entrepreneur. He has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, FOX News, USA Today, Bloomberg News, Realtor.com, CoStar News, Curbed and more.

 

Ian was impressed by the potential of real estate crowdfunding, but frustrated by the lack of quality site reviews and investment analysis. He created The Real Estate Crowdfunding Review to fill that gap.

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Code of Ethics: I do not receive any money from any sponsor or platform for anything including guides, tutorials, postings, reviews, referring investors, affiliate leads or advertising. Nor do I negotiate special terms for myself above what I negotiate for the benefit of members. For clarity: I do receive monetary compensation in 2 ways. Site members can send donations (and a $200 donation entitles them to access my personal low-level due diligence notes on investments I've put money into). And if the club chooses to create a feeder, I take a fee as manager (and keep the excess beyond expenses). Additionally I receive the same non-monetary compensation all club members do: access to otherwise inaccessible sponsors, millions of dollars of special deals and discounts, the satisfaction of giving back and helping others, and more.

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