Many have shied away from investing in real estate over the past year and a half due to high borrowing costs. However, Paul Daneshrad, CEO of Starpoint Properties, sees an opportunity in the market. With property values down by 15% to 25%, especially in the office sector, the potential for recovery is on the horizon as interest rates are expected to decrease.
Daneshrad’s firm focuses on delivering alpha returns that surpass the stock market, with an emphasis on asymmetrical returns. Through a mix of funds and individual properties, Starpoint Properties has seen impressive annual internal rates of return, outperforming major market indices.
Real estate funds offer investors a chance to diversify their portfolios without the hassle of property management. With annual rent increases and potential profits from property sales, there is a compelling case for investing in this asset class.
Despite risks like recession fears and elevated interest rates, Daneshrad suggests picking funds focused on sectors expected to outperform and managed by experienced teams with a successful track record. Utilizing Roth or Traditional IRAs can further enhance tax advantages and benefit those looking to invest in real estate without direct ownership.
By considering real estate funds as an alternative investment, individuals can access the tangible asset class and potentially achieve strong returns. The key lies in due diligence, identifying the right fund, and understanding the tax implications to make informed investment decisions in the ever-evolving real estate market.
