Starting a Real Estate Fund
In today’s tumultuous investing atmosphere there are opportunities to be captured by sharp investors. While the most stalwart of old line companies may have appeared to be a safe hedge against inflation and a profitable gain you may want to also consider investing in a more tangible type of investment. Real estate has for many decades been the safe vehicle of choice for solid gains. With so many large Funds moving into the real estate you may want to consider forming a Real Estate Fund for your own fund offering.
Here are a few points to consider:
Monthly Rental Payments: Each month a property receives a return in form of a rent payment. When you measure the cost of acquisition versus the monthly income a solid return can quickly be recognized. Fund Managers do need to consider vacancy rates, repairs and maintenance, as well as 10% for property management fees. Even after the basic costs a significant return is typical.
Appreciation: The housing market will not remain at the current level for long. When housing values rebound the increases from appreciation will result in tremendous returns. While the 20+% annual property value increases felt from 2000-2006 may not occur in every area even a modest increase in value combined with monthly rentals make single family homes a winner in the investment arena today.
The financial experts at Stonegate Global Fund Services have an all in one offering for you to start a Real Estate Fund. Our turn-key solution simplifies the process of establishing a real estate fund, and includes:
• Preliminary evaluation of the investment strategy and business considerations
• Advising the manager with respect to the long term plan of the fund or family of funds
• Outline of business structure which includes specific nuances of the strategy
• Defining fund structure with legal and compliance
• Writing the fund documents and offering documents
• Fund Administration including monthly or quarterly accounting, calculating the fund’s NAV, shareholder reporting, investor subscriptions and redemptions, as well as facilitating capital calls
• Leveraging our strategic audit partner relationships to provide the annual audit for the fund
• Developing a marketing and media kit for the fund
• On-going consultation
ABOUT STONEGATE GLOBAL
Stonegate Global Fund Services is an offshore and domestic alternative investment fund consulting firm specializing in fund formation and fund administration of hedge funds, venture capital funds, private equity funds, oil and gas funds, real estate funds, private REIT funds and ABL funds.
Based in Atlanta, Stonegate has offices in New York, San Francisco and Dallas. The firm’s industry-leading Hedge Fund In A Box solution is a comprehensive service including fund formation, offering documents, regulatory compliance, fund administration, office space, marketing and media packages, as well as prime brokerage and audit services through the firm’s strategic partners. Stonegate works with family offices, traders, and other institutional clients who are looking to start a hedge fund or other alternative investment fund product. The firm also works with existing alternative investment funds and fund managers to provide fund administration and other institutional services.
To find out more on starting a real estate fund, or our leading edge products and services:
New York: 212.500.5977
San Francisco: 415.347.8574