Real estate is the world’s most significant store of wealth.
In fact, the global real estate market is expected to reach a staggering $654T this year. That’s nearly 6x the value of equities, one of the world’s most popular investment options.
Leading institutional investors like Blackstone ($508B), Brookfield ($246B), MetLife ($190B), and CBRE ($136B) all hold substantial amounts of real estate assets in their portfolios.
For comparison's sake, institutions allocate a percentage of their capital to real estate that’s 3.5X higher than individual investors.
Select investment experts agree retail investors are underallocated.
Take renowned investment manager David Swensen, the man responsible for managing and investing Yale’s endowment assets and investment funds. During his 30-plus-year tenure, Yale’s endowment grew more than 31x thanks to what became known as the “Yale model.” Swensen advised investors to allocate 20% of their investable assets to real estate beyond a primary home.
Tech entrepreneur Ian Ippolito founded a real estate investment club whose 7k+ members hold $17.3B+ in investable assets. He writes that “a lot of investors and data-driven financial advisors are going to be considering a higher allocation.” He’s even considered upping his own portfolio to 45% real estate assets.
Three VPs at investment management company Cohen & Steers agree. They note investors who include real estate alongside stocks and bonds outperform those who avoid real estate assets. “We believe that real estate should be a strategic, long-term allocation for most investors, and extensive research supports this assertion.”
Then there’s research from the University of Florida that suggests an “optimal mix” of 50% real estate, 30% stocks, and 20% bonds for sufficiently diversified portfolios.
Maximum flexibility and capital protection
Now there’s the matter of how individual investors can gain direct exposure, particularly to the types of real estate that have typically been out of reach.
A number of options have entered the market in recent years. Some let you invest in apartment rentals. Others cover single-family homes. You can also get involved with commercial properties, real estate debt, and even international assets.
While most offer the prospect of regular income, they often also require longer lock-up periods and have a limited market for liquidity.
That’s what makes this upcoming platform so compelling.
It’s opening an asset category within real estate that’s been almost entirely out of reach for the typical investor.
There’s potential upside from quarterly income plus a share of asset appreciation plus a way to benefit from the technology behind the platform. The investment also offers a unique form of capital protection tied to US Treasuries as well as a share buyback program at your original price.
It’s even designed in a way where all related profits go to investors with no management fees and no carry.
To discover the type of real estate involved in this first-of-its-kind program and learn more about how it all works, go here.