One of the most common questions we get asked by our first-time investors about our Funds is “Why real estate?” It is a great question. We have been doing this for such a long time that sometimes, it’s a good reminder to take a step back and look at the foundation. So we’re taking this month’s blog post back to basics.
One of the biggest advantages of investing in real estate is its potential for generating passive income. This means that you can earn money from your real estate investment without having to actively work for it. BENA Capital handles all of the decisions related to acquiring, managing, and selling the properties in our Funds. Our role is to deploy our 30+ years of combined expertise in Commercial Negotiations, Real Estate Advisory & Portfolio Management to improve investor returns. We partner with professional property management firms to handle the day-to-day activities and work closely with them to ensure that investor returns are maximized. Rental income is the most common form of passive income in real estate, and it can provide a steady stream of cash flow that can help supplement your primary income.
Another advantage of investing in real estate is the potential for appreciation. Real estate is a tangible asset that tends to increase in value over time. This is due to a variety of factors, such as inflation, increasing demand, and limited supply. BENA Capital’s focus on finding niche cities that offer the best live-work balance, focusing on these areas of growth with strong renter populations, provide our investors with access to properties that have both stable cash flow and appreciation potential. That has always been our approach, and remains the cornerstone of our residential real estate acquisition strategy. By investing in a BENA Capital real estate fund, you have the potential to benefit from this appreciation, which can lead to significant gains in your overall net worth.
Real estate can also provide a sense of security that other types of investments may not offer. Companies can go bankrupt and stocks can fall to zero, but there will always be inherent value in land and in tangible assets. You can effectively control risk by doing homework on the local real estate market dynamics, assessing economic trends, future developments, and demand generators. BENA Capital identifies, analyzes, and selects portfolio investments based on strict quantitative and qualitative criteria. This disciplined due-diligence process ensures a data-driven approach and has enabled us to consistently produce strong returns for our investors.
Finally, real estate can also be a great way to diversify your investment portfolio. Strategic diversification protects your capital investment, and if you’re able to correctly identify the phase each market is currently in, good investments can be found whether the market is in a recession or expansion period, by adapting your investment criteria and exit strategy. At BENA Capital, our Funds encompass different types of real estate - such as multi-family residential and commercial properties - and in different geographic locations; because of this, our investors are able to take advantage of a variety of offerings that reduce overall portfolio volatility.
Real estate is a smart investment choice that provides a variety of benefits, including passive income, appreciation potential, security, and diversification. Whether you are a seasoned investor or just starting out, real estate is definitely worth considering as part of your overall investment strategy. Let us know how we can help!