Real Estate Funds

A fund is a collection of investors pooling their money to be invested by a professional manager. New development properties are one of the most popular kinds of funds. Funds may also be used for undefined projects governed by asset class or location. Real Estate Funds often carry more risk but offer higher expected returns. Although funds generally create cash flow, they are not driven by cash flow; they are driven by capital appreciation and overall returns. Funds are generally held for 3-7 years.