Before getting started, an investor should consider how much time, experience, capital and effort they want to put into real estate. If the investor has experience, deep market knowledge to supply what the market needs, time to find and evaluate the properties, the resources to secure capital (equity and debt), and the ability to execute a business plan by developing/improving and managing properties, then they can build their own portfolio of individual real estate deals. If they don’t, they might consider investing in one or more private real estate funds to diversify. Both options present pros and cons. 




Individual Real Estate Deals




Investors choosing this option must have a great source of information in order to evaluate real estate opportunities. Some of those are Real Estate Brokers, Attorneys, CPAs, Title Companies, Appraisers, Surveyors, Engineers, Builders, Mangers, Operators, Financial Institutions, etc. Many other Investors like the option of crowdfunding websites who offer access to individual deals. These investing-platforms act as the middleman between the investor and the real estate operator. – Many investors choose the “Deal-option” because they prefer the have the control of their own deals, versus trusting the process of Fund Manager.




Private Investing Funds




Private Funds, such as the ones we offer at Capital Insiders, include multiple deals. This strategy ensures that the Fund’s risk will be diversified across several individual properties, geographic locations, and borrower credit profiles. Risk is drastically reduced as the Fund will not be significantly impacted due to deteriorations in any particular real estate property or market change in a single borrower’s performance.




Although some investors may have the financial capabilities to acquire real estate, by investing the same amount in a well-managed private real estate fund, the Investor gets involved in multiple deals that they don’t have access to, or cannot do all at once Also, by investing in a Private Fund, the Managers have a team of knowledgeable professionals who do the due diligence on each property. 




These investing opportunities can range from apartment complex to industrial buildings and those are located in different cities to take advantage of each market. Investing through multiple properties also limits risk; if one property underperforms, it doesn’t impact the others and drag down profits across the Fund. Individual deal investments do not offer this same benefit. If one deal doesn’t perform, then the investors suffer substantial loss. 




Finding a great private real estate fund is complicated, and some investors might have the tendency of vetting past Fund results rather than making an interview and evaluating the Manger. Vetting past results is a good start, but getting to know the Fund Manager is crucial for the future Fund’s performance 




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Please give us a call at 956.928.1111 or email us at invest@capitalinsiders.financial




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