Integrating alternative investments into your portfolio can enhance diversification and reduce exposure to market volatility.

Additionally, real estate can help provide stability against the daily fluctuations of the stock market. While no investment comes without risk, investing in private equity often offers attractive tax benefits, which may significantly boost your overall returns.

Investing in private equity real estate gives individuals a chance for higher returns than what they’d traditionally find compared to stocks or bonds. In addition to diversification by spreading investments across different types of assets, investors can also generate passive income while the assets are being held. However, this is not to say there are no risks when investing in real estate.

While real estate investment offers exciting opportunities, it also comes with its share of uncertainties. It’s important to remember that targeted returns are just that—targets. The actual performance of a real estate investment can vary and may not always meet expectations.

Several factors contribute to the uncertainty of investing in real estate, including rental, occupancy, and vacancy rates. Additional factors can include the actual investment period, the exit cap rate, and interest rates. Investing in real estate requires a thorough understanding of these risks and an acceptance that outcomes may vary from the targets. As always, it’s wise to consider these factors carefully and consult with your advisor to make an informed decision.

And if you don’t have an investment advisor, connect with our partners at Larson Financial Group today. Learn what it truly means to flourish.

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Investment advisory services are provided by Larson Capital Management, LLC, an investment advisor registered with the Securities and Exchange Commission. All securities involve risk and may result in significant losses. Investing in private placements also requires long-term commitments. Risks and Limitations: the risks associated with making investment decisions based on targeted metrics is that they are targets. Commercial real estate investing is risky, and that means that the investment will not always play out according to expectations. Criteria and Assumptions: how a sponsor approaches the underwriting process (conservative, moderate, aggressive) may change the assumptions of the model which include targeted: cash yield, equity multiple, IRR, investment period and distribution rates.

For Accredited Investors Only. According to the SEC, an accredited investor, in the context of a natural person, includes anyone who earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year OR has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence).