Investing in Non-Listed Real Estate Funds: Experiences and Returns
Dear Happy Investor, investing in non-listed real estate funds is in demand and becoming more and more popular. This is because investing in non-listed real estate funds has some interesting advantages. That is also the reason why I invested in a non-listed real estate fund a few years ago.
In this article I will share with you my experiences with investing in non-listed real estate funds for over the last five years. We will learn about the advantages of investing in a non-listed real estate fund, and what should you pay attention to. And what returns can you expect? Read on for the answers.
Let us begin and start your journey towards financial freedom!
Contents:
Investing in non-listed real estate funds
What is a non-listed real estate fund?
What are the benefits of investing in a non-listed real estate fund?
My experiences with investing in a non-listed real estate fund
Non-listed real estate funds and returns: here’s what to expect
Investing in non-listed real estate funds
Those who understand the essence of money, are able to adapt smart money behavior. And the truth is simple: money makes more money. You can work very hard, but it’s better to let the money work for you.
There are several tactics for this (just read my articles). Many of these tactics have to do with investing. Because the best way to let money work for you is by investing it.
Yes, it is true that investing has risks. Some investments like growth stocks are very risky. However, there are also ways to invest with little risk.
One excellent example of investing with lower risk is to put some money into non-listed real estate funds. Non-listed real estate funds are relatively safer than REITs, because you will not experience the risk of price volatility (that also gives opportunities). Instead, you can invest your money into a non-listed real estate fund and you may expect a very decent and relatively stable dividend (income).
However, very important is to keep in mind that risk diversification is key. My personal advice is to not put more than 20% into non-listed real estate funds. Only invest with money that you can afford to lose. Pick two or more non-listed real estate funds in which you can divide the 20%. The remaining 80% should be invested in alternatives such as stocks, ETF’s, mutual funds, P2P Lending, and so on.
Building a diversified investment portfolio is key, and non-listed real estate funds are an interesting addition.
Read more about the basics of how to start with real estate investing.
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What is a non-listed real estate fund?
A non-listed real estate fund is a form of a mutual fund. The idea is that many people can invest their money in this fund. The fund will invest the total sum of money in real estate. They buy houses, apartments, or commercial real estate. It depends on their strategy.
There are different types of non-listed real estate funds with all kinds of different tactics. Depending on the strategy, you can also expect a certain return. Some non-listed real estate funds have structurally higher returns than others. This is how you recognize the winners.
You can see this by downloading their brochures in which they mention the average return. The higher the average return, the better. For example, I have experience with several non-listed real estate funds that provided me a stable dividend of +8,5% a year for the last four years. More on that later, you’ll also immediately understand what to look for and how to see what the returns are from a non-listed real estate fund.
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What are the benefits of investing in a non-listed real estate fund?
One of the core components of my vision for the Happy Investors Mindset, is to make more money in less time. This means that I am looking for passive income ideas that generate money without having to work (a lot) for it. Usually, passive income is not that passive, but investing is one of the tactics that comes closest.
For example, investing in a non-listed real estate fund doesn’t cost you any time at all. All the work is done for you. All you do is make your assets available, and you take risks (investing is never without risk). But a manageable risk. And with the right non-listed real estate fund, you can minimize the risk. More on that later, because I’ve already named my personal favorite.
Investing in a non-listed real estate fund has the following advantages:
- Diversification: instead of buying one house by yourself, your wealth is spread over many houses and properties. This gives you less risk.
- Dividend in advance: a good non-listed real estate fund pays out a dividend in advance every month.
- For starting investors: when investing in properties and houses you need a high starting capital. Not so with non-listed real estate funds. There are non-listed real estate funds in which you can participate from 100 dollars per month. The entry barrier is low!
- Relatively lower risk: good non-listed real estate funds ensure that their income is as stable as possible. Choose a non-listed real estate fund that has a sustainable, long-term strategy where they work with long leases for the most stable return possible.
- Time: investing in a non-listed real estate fund generates stable income without you having to work for it.
My experiences with investing in a non-listed real estate fund
Before I started investing in a non-listed real estate fund, I did extensive research. When comparing non-listed real estate funds, I found surprisingly many differences. For example, not all funds meet the benefits I described above. This is quite striking and often has to do with the investment strategy.
In my personal case, I was looking for a reliable non-listed real estate fund that generates stable income at low risk. No crazy stuff, but a stable and sustainable source of income. From my experience, I now know that the SynVest.nl non-listed real estate fund is by far one of the best choices. Not only does this fund meet all the benefits I mentioned above. But they also meet my own personal criteria: a reliable non-listed real estate fund that generates stable income at low risk. For example, I have previously written an extensive review on SynVest.
Another good non-listed real estate fund that is the best choice for novice investors is Corum Investments. They give lower returns than SynVest, but have other advantages such as a larger fund and the possibility of smaller investments (from 150 euros). Read about the difference between SynVest vs. Corum Investments here. Personally, I would split your money between both funds for extra diversification.
Please note that both non-listed real estate funds are established in the Netherlands. It will not be accessible for all of us, but it should be for European Investors. However, there are non-listed real estate funds in every country from which you can benefit.
If you are considering investing in non-listed real estate funds, I can very strongly advise you to read these reviews, based on my experience. Because if you make the right choice, it can save you a lot of money. Learn from my experiences and use them to your advantage 😉.
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Non-listed real estate funds and returns: here’s what to expect
When it comes to investing, this golden rule always applies: risk = return. This means that if the risk increases, your expected return will also increase. If you want little risk, you should not expect extremely high returns. However, there is bandwidth in this rule. So sometimes you have investments that are less risky than other investments, and still provide the same or even higher returns. This is called smart investing. And those who invest smartly in real estate can become absolutely rich with real estate. This starts first of all with making the right choice. Compare non-listed real estate funds and choose the fund that has the least risk but pays out one of the highest returns. Now I have already stated above what my experiences with real estate investing are.
SynVest non-listed real estate fund has some very big advantages, in my experience. For example, they only invest in German real estate where long leases of up to 15 years are normal. In addition, they only focus on supermarkets and discount stores, which are little affected by recessions and online competition. And on top of that, they also pay out a monthly advance dividend of 6.2% on an annual basis. That’s why my experience has been so positive and I’m very pleased with this fund. The average return since their inception is 8.3%. This is a relatively high return, while they have a sustainable long-term strategy with low risk (15-year leases are pretty safe!). I’ve been investing since 2016 and my return is even around 8.9%. You can now imagine why my experience with real estate investing is so positive.
However, risk diversification is key! So don’t put all your money in one basket and invest in alternatives such as ETFs, dividend stocks, P2P Lending, and alternatives.