Private Real Estate Offerings: A Closer Look into Private Funds and Syndications
AARE’s private offerings cater to sophisticated investors seeking direct ownership of real estate assets. Unlike public offerings, private offerings are not SEC-registered and involve fewer reporting requirements, providing investors with greater flexibility and creative options to direct their real estate investments.
Key Advantages of AARE's Private Offerings
Direct Ownership: Private offerings provide investors with direct ownership of specific real estate assets, giving them the potential for higher returns while delegating the property management and control over the investment decisions to the managers.
Tax Benefits: Private offerings offer various tax benefits, including the potential for capital gains, depreciation deductions, and pass-through income. These benefits can significantly enhance the overall investment yield.
Diversification: While private offerings typically involve a smaller number of properties compared to public offerings, they still provide a degree of diversification by investing in multiple assets. This helps mitigate the risks associated with single-property investments.
Professional Management: As with public offerings, private offerings are managed by experienced real estate professionals who handle the property selection, acquisition, and management processes. This allows investors to benefit from expert oversight without the need for direct involvement.
Understanding the Risks
While private offerings offer attractive advantages, they are not without risks:
- Higher Risk: Private offerings generally carry a higher level of risk compared to public offerings due to their lack of liquidity and potential for illiquidity. Investors may face difficulties selling their investments in a timely manner, especially in challenging market conditions.
- Illiquidity: Unlike public offerings or public stock traded on stock exchanges, private offerings are not publicly traded and have restrictions. This can make it difficult for investors to access their funds quickly if needed.
- Management Risk: As with public offerings, there’s always the risk of mismanagement or poor investment decisions by the management team. This could negatively impact the performance of the investment.
- Regulatory Compliance: Although private offerings are not SEC-registered, they are still subject to certain regulations and reporting requirements. Investors should be aware of these requirements and be prepared to cooperate with this compliance.
Suitability and Due Diligence
AARE’s private offerings are primarily suitable for non-accredited and accredited investors who meet specific financial criteria and possess a high-risk tolerance. Before investing, it’s crucial to conduct thorough due diligence, carefully assess your investment objectives, risk appetite, and financial situation, and consult with a qualified tax, legal and financial advisor.
AARE's Commitment
AARE is committed to providing transparent and professionally managed investment opportunities in the real estate sector. Through its private offerings, AARE strives to deliver value to its investors while upholding the highest standards of integrity and regulatory compliance.
For more information on AARE’s investment products, please contact our investor relations team. Learn more about each investment type by visiting each investment product’s webpage.
Disclaimer:
This information is for educational purposes only and should not be construed as tax, legal or financial advice. Investing involves risk, and past performance is not indicative of future results. Please consult with a qualified tax, legal and financial advisor before making any investment decisions.
Our real estate investments bring new life into the communities we serve through forward thinking funds composed of investors demanding more from their portfolio.
