A Real Estate Investment Trust, also called a REIT, is usually a parking place for money earmarked by high net worth individuals for direct investment in commercial real estate. The REIT owns operating properties and the rental income gets passed through to the owners of the trust.
The private partnership is the real estate vehicle of choice for both the ultra-high net worth individuals and insurance companies. The partnership can provide an opportunity for value-added property additions to the asset-side of a portfolio.
Real estate is primarily a business interest that our client's own. The wealth advisor's role is to incorporate the needs of the client into a strategy for each piece of property owned. Income-producing real estate forms a large part of many wealthy individual's portfolios. The way most financial planners and wealth advisors get involved in real estate investment advice is by referring the client to an experienced real estate broker.The truth is that there are excellent tax-planning strategies involving real estate assets, among them the 1031 exchange, which allows deferral of capital gains if the proceeds of a sale are invested in "like kind" assets. When it comes to choosing commercial real estate investments, high net worth individuals tend to be do-it-yourselfers. There's a lot of opportunity that is passed up by not seeking the advice of an experienced broker.
Capp Commercial looks forward to sitting down with you as your friend and wealth advisor, and bringing to the table the knowledge and tools available for you to make the most informed decision on your next investment.
Your Portfolio
Families worth 100 million plus typically keep 20% of their holdings in some form of commercial real estate. The role of real estate in their portfolios is to provide an inflation-protection hedge.
The second most popular investment is undeveloped land, and all of our investors say they plan to continue to invest in raw land in the path of progress.
Sole-Owner Purchases and Sales
Two Thirds of our Investors, over 70%, have made a direct investment as a sole owner. These transactions have been traditional purchases and sales.
