Emerging real estate Investment funds of all types continue to proliferate and with them, a few misconceptions. Here are 3 of them:

Myth 1

The fees are higher. In fact, a well-run independent investment fund can be significantly less expensive than a REIT. Typically, a non-traded REIT charges a fee spread from 3 to 7 per cent. Contrast that to the 1% upfront acquisition fee and the 1.5% ongoing and annual asset management fee that an independent fund can charge. Even combined, this puts the fee below the lowest end of the REIT spectrum. Not all independent funds offer this advantage, but with research they can found and offer tremendous benefit.

Myth 2

Unregistered is unsafe. An unregistered fund that aligns with reputable, public companies will follow the same institutional standards as a registered one – reporting, routines and controls. Look for funds that are partnered with well-known accounting and brokerage firms – a sign that a fund will be offer the same disciplined approach as its partners. In addition, large investors in these funds have more control, greater customization and a more influential seat at the table than with REITs or mega-funds. This influence, institutional infrastructure and the less expensive entry into investment over registered funds, adds up to a safe haven with a greater opportunity for return...

Myth 3

Investment options are limited. In fact, an independent fund will give a Family Office investor more options and more say in the process. A solid fund will be diversified in many strategic markets and can customize the asset, strategy and return based on the explicit objectives of the Family Office portfolio. The best funds will have no tie to interest rates and will provide out-size returns in a wide range of markets that ensure wealth appreciation in the long term.