Challenges of Investing in Real Estate

The commercial real estate market is making a comeback! Recent data suggests that now seems to be the ideal time to add real estate to your investment portfolio. Some benefits of investing in commercial real estate are:

  1. Stable cash flows: Commercial properties are typically occupied by tenants that have long-term leases, making cash flow fairly predictable.
  2. Low risk diversification: Private commercial real estate investments can be a wise portfolio diversifier since their returns have low correlations with other asset classes such as stocks and bonds.
  3. Inflation Hedge: Given its positive correlation with changes in the consumer prices, real estate investment can provide a partial hedge against inflation. As consumer prices rise, so do real estate cash flows and, typically, associated property values.

However, it is a known fact that unlike other investments, investing in Real Estate is not easy. There is a lot of research, analysis and homework required to identify the right investments.

Identifying the right investments can be a HUGE challenge. It requires for you to be involved with the project- the less involved you are, the lower the chances of it being a profitable experience. Perspectives about the quality of a property, its location, consumer demand, regulatory and political environments in which the building operates, and its price relative to its long-term value all naturally underwrite investment decision-making. It is equally important to know who the Sponsor is, look at his track record, understand how the deal is being managed, project the returns, figure out the required course of action for an event where your money may be tied-up for too long. Hoping something will go up in value isn’t a very sound investment strategy. Experienced property owners avoid even considering any appreciation in value and know that the good investments pay positive cash flow to you each month.

That is why due diligence in the acquisition of properties is at the core of real estate investment. And that is what the team at iFunding is extremely skilled at. Our team of real estate professionals has deep industry expertise identifying and managing institutional quality real estate investments.

iFunding brings a lot of benefits for its users, that are not available with any other service provider. Some of these are mentioned below:

  • Access institutional quality investments at a lower cost
  • Review and sign due diligence documents online
  • Invest online
  • Lower Fees
  • Full Transparency
  • Select individual properties
  • Discuss projects with operating partners and community in online chat room
  • Receive timely dividends
  • Trade investments online on secondary platform

iFunding works with its network of real estate owners, operators and developers to present our investors pre-packaged, ready-to-go investments that allow them to create a diversified portfolio. Investing in real estate doesn’t have to be so complicated and challenging anymore!