It is managers’ natural instinct to flee the market when it starts to plummet, just as a greed prompts to jump back in when the market is skyrocketing. Both actions can have negative impacts, but disciplined managers can overcome the power of emotion by focusing on relevant research, solid data and highly proven strategies.




Here are some principles that successful managers fight to make emotional decisions in times of market turmoil:






	
Market corrections are part of RE investing






Real Estate has been solid for nearly a decade, but history tells us that RE is a cycle and that market declines are an inevitable part of investing. The good news is that corrections and other challenging patches have not lasted forever.






	
Timing matters






Managers understand that no one can predict the market’s future, thus investors who are sitting on the sidelines risk losing out opportunities.






	
Emotional investing can be hazardous






Emotional reactions to market events are perfectly normal. Managers should expect to feel nervous when the RE market declines, but it’s the managers’ actions during such periods that can make the difference between investment success and shortfall.




One way to encourage rational investment decision-making is to understand the fundamentals of real estate, the markets and the economics where the manager of the fund has invested in. Understanding those markets help managers encourage its investors to not make emotional investing decisions.






	
Make your plan and stick to it






Creating and adhering to a thoughtfully investment plan is another way to avoid making short-sighted investment decisions, particularly when markets move. Savvy Investors have a process to evaluate a fund and its manager. Besides making an evaluation of both; the manager and its funds, the investors must have a plan to take into consideration several factors, including its own risk tolerance and his/her short- and long-term investment goals.






	
Diversification matters






Diversification plays a huge role when considering investing in Private Lending Funds. Fund managers have the capabilities to diversify loans by geographical areas, and asset types (Residential and Commercial) such as Single-Family, Multi-Family, Townhomes, Garden Homes, Condominium, Retail, Light Industrial, Warehouses, Self-Storage, Apartments, Commercial Plazas. Managers will lend throughout diverse geographic areas to manage risk.




For investors who want to avoid some of the stress of down markets, a well-managed fund with a diversified portfolio is a great investment option.






	
Fixed income 






There are four key-features to fixed income investments that make them desirable to investors: Diversification, Capital Preservation, Current Income Generation, and potentially favorable tax treatment. Each feature provides a unique set of benefits that varies depending upon the type of fixed income investment.




Capital Insiders Fund’s investment goal is to provide attractive, consistent, risk-adjusted current returns secured by real estate through the origination making, and purchase, of mortgage loans secured by first-priority liens on underlying real estate.




If you are seeking a steady and reliable stream of income while receiving attractive, risk-adjusted yield you may want to consider investing in Private Lending Funds.






	
Challenging markets tend to reward long-term managers and investors.






When markets are making a correction, it’s important to maintain a long-term perspective. Although RE markets can adjust, those same markets have rewarded managers and investors over longer periods of time.




At Capital Insiders, we understand that investors may express concerns during challenging times. However, we have navigated those markets in the past and successfully delivered consistent and conservative returns to our investors due to the discipline and strict underwriting policies applied at any given market. 




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




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