Why should you invest in private equity Real Estate?

Blog March 2024

Commercial real estate has a lot of potential and a much more significant capital gain in the long-term compared to other investment opportunities. Each opportunity in real estate is different due to the number of variables that change solely with a different location.

Real Estate Private Equity utilizes pooled investments to tap into opportunities in the real estate market.  It’s not exactly similar to a Real Estate Investment Trust, which is a public concept and doesn’t follow into the fundamentals of Real Estate quite very often.

Which ultimately brings the question, why would one invest in an REPE instead of an REIT? Or as a matter of fact, why invest in an REPE at all compared to other forms of investment.

Well, let’s first establish that Real Estate Private Equity is in a very different league compared to any other investments which needs consideration; and we’ll show you exactly why you need to diversify your investment portfolio with an opportunity like this.

Investing in GCG’s private equity Real Estate

People with a considerable net worth have been on-board with us for a while now, and their investments are used to provide them with a huge capital gain.

The way our REPE differs is that we provide better risk-adjusted returns and have a very transparent fee structure compared to what you would see in other traditional investment vehicles and banks.

For the short-term option, we aim to do four cycles within one year. That makes this the perfect investment opportunity, allowing you to liquidate your assets within the very same year!

Our process involves scouting out undervalued properties, acquiring them, renovating them, and finally selling them for a higher price, all within a time period of 3 months.

Our tools at your disposal!

Your investment as a Limited Partner will be utilized by us as General Partner, to be used in the right place for the right profit at the right time. The entirety of our network that we’ve accumulated over the course of several years will be used to bring you the best results on your investment.

Power of the collective

The higher the price, the better the product. As an individual, you might not be able to reach the mark for properties that offer a higher return. With everyone pooling their private equity investment, you’ll get fractional ownership of a quality asset that you might not have been able to otherwise purchase on your own.

Passive income?

You heard that right. Since we’ll often be renting out the real estate assets to generate income; you’ll be entitled to a portion of it as well as profits that are generated by the underlying asset.

Save your valuable time!

Real Estate is a fairly time-consuming process. Visiting different properties and analyzing them on your own can often be a huge task; not to mention the market research you’re going to have to do on your own to determine the potential profit on your purchase.

By investing your money into a Private Equity such as GCG REPE, you’re essentially outsourcing all of these tasks to us. We’ll determine the best property, work on acquisition and manage it accordingly to generate profit.

Embarking on a journey to optimize your investment ventures, the decision to engage a skilled property manager emerges as a strategic maneuver, affording you the opportunity to reclaim precious time otherwise consumed by the demanding intricacies of property administration and tenant relations, enabling a renewed focus on strategic investment initiatives and the cultivation of a diversified portfolio while entrusting the meticulous oversight of your real estate assets to seasoned professionals adept in the nuances of property management. As you delegate these responsibilities, it’s essential to pose insightful property manager questions to ensure alignment with your investment goals and to secure a partnership built on trust and competence.

Our objective is to add value, reposition and create a minimum of 25% ROI every year. We have lawyers, handymen, and all other necessary personnel on standby to make the real estate experience as smooth as possible. Our partners will handle the leg-work while you will hand us the investment as we use it to bring you profit.

Flexibility

The best thing about Real Estate Private Equity is the flexibility you get along with it. You can find a deal that best fits your budget and invest as much as you want. You can even invest in multiple projects and diversify your portfolio.

Real Estate private equity Vs. Real Estate investment trust (REIT)

Compared to REITs, investors generally lean towards going for a Real Estate Private Equity. The only disadvantage that you could think of investing in REPE would be the problem with liquidity. But with GCG’s model, liquidity isn’t a problem since our strategy is to focus on profit within a shorter time frame.

Public Investment Trusts can be inefficient with how much cost it requires to manage the entire infrastructure. The money being pooled in is fairly significant, and not to mention that your money can take a turn for the worse if the economy starts to tank at any given moment.

Real Estate Private Equity is a more closely managed fund. The amount of money being pooled in is significant enough to buy quality properties, but it isn’t significant enough to amount to a huge number of employees.

Compared to REITs, REPEs will generally be more diligent about where they make their investment. For them, the acquisition’s a more extensive process and solely their responsibility while REITs may often outsource this task to others.

Answering the question of ‘why’ you should go for us – We care for every little detail in our extensive investment procedure, and provide transparency to our clients while coordinating the entire process of acquisition. Saving you time and money and bringing a worthwhile return on your investment.

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FAQ

Any questions

What is affordable housing?

Affordable housing refers to housing units designed to be accessible to low- and moderate-income families, typically costing no more than 30% of their gross income.

The definition of “affordable” typically varies depending on location and income levels but generally encompasses rent or purchase prices that don’t exceed a certain percentage of a household’s income.

What is Section 8 housing in the US?

Section 8 is a federal rental assistance program in the US run by the Department of Housing and Urban Development (HUD) that helps low-income families and individuals afford decent and safe housing in the private market. 

The program provides eligible households housing choice vouchers that cover a portion of the rent directly to the landlord, with the tenant paying the remaining amount. Property owners who participate in Section 8 agree to rent units to qualified individuals and families at a rate approved by the program.

How can I invest in Section 8 housing?

There are several ways to invest in Section 8 housing:

  1. Direct ownership: You can purchase a property approved for Section 8 and rent it to a qualified tenant using a voucher and receive rent subsidized by the government.
  2. Real estate investment trusts (REITs): REITs pool investor funds to purchase and manage income-producing real estate, including affordable housing.
  3. Limited partnerships: Limited Liability Companies (LLCs) offer another option for investors to pool resources and invest in affordable housing projects.
What is the difference between multi-family and single-family properties?

Single-family property: This refers to a standalone house or unit designed for and rented to one household.

Multi-family property: This refers to a property containing multiple dwelling units, such as a duplex, apartment building, or condominium complex. Multi-family properties offer the potential for higher rental income but typically require different management strategies and considerations compared to single-family homes.

What is the difference between buying and flipping houses?

Buying and holding: This involves purchasing a property to keep it as a long-term investment, generating rental income and potentially appreciating in value over time.

Flipping: This involves buying a property, renovating it to increase its value, and then selling it quickly for a profit. This is a more hands-on strategy with higher risks and rewards compared to buying and holding.

How much do I need to start investing in affordable housing real estate?

The minimum investment required varies depending on the chosen method. Direct ownership typically requires a higher initial investment for the property purchase, and renovation up to Section 8 standards, while other options like REITs might have lower minimum investment amounts.

Do I need to be a US citizen to invest and own the property?

No, US citizenship is not a mandatory requirement for investing in affordable housing in the US. However, specific restrictions or regulations might apply depending on the investment method and your residency status.

It’s crucial to consult with a professional to understand the legal and tax implications for non-citizens.

Do I need to pay US tax as an overseas investor?

This depends on the type of investment, your residency status, and any applicable tax treaties between your home country and the US.

Consulting with a tax professional specializing in international investments is highly recommended.