Real Estate Investing
Direct property, syndications and private funds backed by physical assets.
Real estate returns come from rental income, debt paydown, appreciation and tax treatment such as depreciation.
Real estate returns come from rental income, debt paydown, appreciation and tax treatment such as depreciation.
Private real estate is illiquid: capital is typically locked up for three to ten years.
Key concepts to master
- 01.Total cost of ownership, including fund fees and platform fees
- 02.Liquidity: when, and on what terms, you can get your money back
- 03.Tax treatment and which account type this belongs in
- 04.How this exposure overlaps with what you already own
Common mistakes
- ×Sizing a position based on recent performance rather than a written plan
- ×Confusing infrequent valuation with genuine stability
- ×Ignoring the tax drag of frequent trading in taxable accounts