How Mere Accredited Investors Can Access Elusive Core Real Estate
Updated: 3 days ago
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: