Having an asset within your portfolio that yields passive income while also providing a hedge against inflation is an attractive dual feature for many investors. A commercial real estate investment fund (CRE) can be an excellent addition to one’s portfolio. The benefits of a CRE include portfolio diversification, liquidity, and the fact that investors will save time not having to manage a property.
What Is a Commercial Real Estate Investment Fund?
Generally speaking, a CRE is any investment that pools capital from investors with the intent to deploy it into commercial real estate properties. Though there is certainly nuance between the specifics of one fund and another, they typically have a few things in common.CREs have fund managers who ultimately make the decisions regarding the fund and where the money goes. When real estate investors invest their money into a fund, they do not know what properties the money will be used to purchase. Trust is placed in the fund manager to seek out the best opportunities.
