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How the Fund Works for Investors

We hear lots of questions about the fund from investors and potential investors. One of those is about the nature of what it means for you, so I explain if the fund means you own real estate or is this like a REIT…

As I’ve gone into detail with other posts, we’re getting plenty of great questions about the fund. One of those common questions we hear frequently is: will I own the real estate, or does this work like a REIT (real estate investment trust)?

The answer to this one is really simple! Yes, you still own the real estate, and you’ll still get a K-1 at the end of the year. (The Schedule K-1 being the form that each partner gets at the end of the year for tax purposes.)

To make it easier to understand; this would be just like if you and I went out and bought duplexes together – lots of them – in the fund. Ultimately, you are a partner in the real estate! So the simple answer to this is no, this isn’t a REIT, and yes, you do own the real estate.

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