Real estate funds are typically larger than DST/TIC structures, but smaller than REITs. They often seek to raise $100 million or more in capital to purchase income-producing real estate, and many use leverage to increase their purchasing ability and projected returns. Due to their manageable size, real estate funds are able to focus on particular asset classes or regions of the country. Some will also focus on purchasing real estate from certain institutional sellers, allowing them access to discounts or benefits not normally available to the smaller investor.
Like DST/TIC offerings, real estate funds typically have a projected period of holding the property (i.e., 5-7 years), though the date of sale depends upon factors related to the specific properties and the overall market, which cannot be predicted with certainty.
Investments in real estate funds are not considered an interest in real estate and are not eligible for 1031 exchange purposes.
Real estate fund offerings through Fortitude are private placement investments accompanied by a private placement memorandum. They carry significant elements of risk that you should carefully evaluate before purchase. They have no established secondary market and should be considered illiquid investments.