Invest in Private Real Estate
Looking to invest in real estate opportunities but do not have enough for a full down payment yourself? Looking to avoid the hassle of managing tenants with your busy schedule? Looking to expand the pool of investment opportunities available to you? Looking to try out investing in the real estate market but with a small initial investment?
Consider directly investing in private real estate offerings on Equivesto. Real estate backed investments, including funds with multiple properties, individual properties offering fractional ownership, and everything in between, with investments starting as low as $100.
Benefit from Equivesto’s Exempt Market Dealer license and due diligence (know your product) process on each deal. Review multiple opportunities, read the documents, sign the paperwork, and move the funds all digitally via Equivesto’s platform.
What are Real Estate Opportunities?
Real Estate investment opportunities is a term for any investment opportunity that involves real estate. There are many different types of real estate investments on Equivesto including Fractional ownership, development companies, and funds.
What is Fractional Ownership?
Fractional ownership is when you as an investor are joining with other investors to buy a single property. As a result, you own a piece of the property (a fraction). On Equivesto, fractional ownership is often structured as a Limited Partnership. Read below to learn about Limited Partnerships.
What is a Development Company?
A development company is a company that specializes in the building and preparation of houses or properties. Development companies are corporations that typically work on and develop homes. They can either buy undeveloped land and turn it into new houses (operating in the primary real estate market), or can buy old properties and renovate them (operate in the secondary real estate market). Development companies can either own real estate property themselves or can have the rights to develop the land on behalf of the land owner. Typically the development company will look to own the land themselves.
What is a Real Estate Fund?
A real estate fund is a company that specializes in gathering investment from multiple people and pooling the funds together to then buy and manage multiple different investments in real estate. Real Estate Funds can focus on one section of the real estate industry (like only on investing in developers, lending funds to mortgage properties, only on commercial real estate, or only participating in the primary or the second market) or in any combination.
Make sure to read the details on the Fund’s offering page on Equivesto to understand more about what sector of the real estate market the fund invests in.
Real Estate funds are typically structured as limited Partnerships or as Trusts, and in either situation buy Units in either the Trust or the Limited Partnership. Read below to learn about Limited Partnerships and Trusts.
What is a Limited Partnership (LP)?
A limited partnership is a business where one individual (The General Partner) runs the business for the benefit of multiple investors who do not run the business (Limited Partners). Investors on Equivesto are limited partners and buy Units in the Limited Partnership. The general partner is often a corporation. Each Limited Partnership will have a Limited Partnership Agreement, which outlines the relationship between the Limited Partners and the General Partner, and what the general partner is allowed to do. General Partners typically charge a management fee to the Limited partners on an annual basis for managing the partnership. Make sure to review the Limited Partnership Agreement attached to all limited partnership offerings on Equivesto prior to investing.
What is a Trust?
A trust is an organization set up for the purpose of managing funds. The funds are provided by the Trustor, to be managed by the trustee, for the benefit of the beneficiary. Trust typically do not use the funds themselves, and instead simply invest the funds into different investments as per the terms of the trust. The primary purpose of a trust is often for legal and tax reasons.
On Equivesto, if you invest in a trust, you (the trustor) are giving your funds to the Trustee to manage those funds and return them to you (also the beneficiary) as per the terms of the agreement. If you are investing in a fund that is structured as a trust, your investment in the trust will immediately be invested into an underlying limited partnership, and the trust is simply there for tax/legal reasons.
What is the Primary Real Estate Market?
The primary real estate market is the market of buying new homes or properties that have just be finished by builders or developers. Participants in the primary real estate market are developers, builders, lenders, investors, mortgage brokers, real estate agents, and of course, homebuyers.
What is the Secondary Real Estate Market?
The secondary real estate market is the market of buying existing properties that have already been built. Participants in the secondary real estate market are homeowners, property management companies, buyers, mortgage brokers, real estate agents, contractors, and investors.
What is the difference between residential and commercial real estate?
Residential real estate is real estate property that is for the purpose of home and housing for people. Commercial real estate is real estate property that is for the purpose of running businesses. Commercial real estate can also focus on office space, retail (shopping), industrial, and more.
When should I expect Returns from my Real Estate Investment?
Real Estate Investments can offering different returns to those of small businesses or startups. Often real estate investments will provide a combination of a fixed return and a variable return, or even just a fixed return. Real estate investments can also often provided dividend payments during the investment period, and real estate investments will also often have a clear end date. Some real estate investments even offer Redemption terms, which can allow their investors to sell their investment ahead of the set end date.
Make sure to review the terms of real estate investments on Equivesto clearly to understand if the investment offers dividends, if the returns are fixed, variable or a combination, if the investment offers redemptions, and if the investment has a clear end date.
Investors in real estate can sometimes expect returns in the short or medium term if their investment offers dividends, but should not expect to easily sell their investment unless it offers redemptions. Each real estate investment is different. Read the details and terms of each real estate investment listed on Equivesto on their campaign page to get a better idea of when you might expect returns.
