4 Reasons to Invest in Private Commercial Real Estate

John Norris, Director of Private Wealth for CrowdStreet Advisors, explains several ways CRE may potentially strengthen portfolios.

By Rethinking65

John Norris, Director of Private Wealth for CrowdStreet Advisors, explains several ways CRE may potentially strengthen portfolios.

CrowdStreet, Inc. (“CrowdStreet”) offers investment opportunities and financial services on its website. Advisory services are offered through CrowdStreet Advisors, LLC (“CrowdStreet Advisors”), a wholly-owned subsidiary of CrowdStreet and a federally registered investment adviser.

Investing in commercial real estate entails substantive risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Direct and indirect purchase of real property involves significant risks, including without limitation market risks, risks related to the sale of land and risks specific to a given property, which could include the potential for property value loss, potential for foreclosure, changes in tax status and fees, and costs and expenses associated with management of such properties. All investors should consider risks specific to that given property prior to investing.

Though private real estate is, by nature, generally less volatile than the stock market. This lack of volatility does not necessarily translate to private real estate not fluctuating in or losing value. Further, the value of private real estate investments will fluctuate, and the value of real estate often lags behind general market conditions. Further, publicly traded equity REITs may offer more liquidity options than more traditional, non-traded REITs or private placement real estate investments. Non-traded REITS and private placement real estate investments typically have restrictions and limitations on overall liquidity.

Tax aspects of such investments can be complex and may differ depending on the property or offering and on individual tax circumstances. Neither CrowdStreet or its affiliates offer tax or legal advice. Investors are strongly encouraged to seek advice from qualified tax professionals and/or legal experts regarding the tax consequences based on their particular circumstances.

This video is for informational purposes only and should not be construed as an investment recommendation or advice, or as an offer to sell, or the solicitation of an offer to buy an investment. Though CrowdStreet believes the information contained herein has been obtained from sources believed to be reliable, they make no guarantee, warranty or representation of it.

All information provided is for educational purposes only and does not constitute investment, legal, or tax advice, or an offer to buy or sell any security or investment product. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. All examples are hypothetical and for illustrative purposes only.

Latest news

Drug Shortages Approach an All-Time High, Leading to Rationing

Thousands of patients are facing delays in getting treatments for cancer and other life-threatening diseases

Cars May Have Explosive Airbag Part

The Wall Street Journal has identified at least 6.8 million vehicles that may have dangerous air-bag inflators.

Large Advisory Team Joins Commonwealth

A long-time Securities America advisory firm with nearly $465 million in assets under management has joined Commonwealth Financial.

Schwab: Debt-Ceiling Woes Shouldn’t Intimidate Investors

Government default is unlikely, but even so it would not really impact those with a longer-term investing horizon.

Accelerated Biological Aging Can Worsen Mental Health

A new study of nearly a half-million midlife and older adults found it may increase depression and anxiety.

Advisor Growth Curbed By Psychological Factors: FPA

A study by the FPA and Janus Henderson finds psychological and other reasons stand in the way of financial advisors' AUM growth.