Net Operating Income from the property pays down the debt, which in turn builds equity for investors to preserve their initial investment while providing strong risk-adjusted returns.
Investing in assets with pre-existing cash flows protects the downside risk and allows investors to benefit from active distributions, with additional upside through refinancings and dispositions.
Unlike stocks and bonds, real estate assets generate passive cash flow for its investors from the income generated by the property.
Investors benefit from accelerated depreciation, cost segregation, and passive income, which is taxed at a lower rate than any other investment.
Value-Add & Repositioning