What is Real Estate Mutual Fund Trust?

“Real estate mutual fund trusts offer exposure to a diversified portfolio of real estate assets with professional management, making them an attractive option for individual investors.”

A real estate fund trust is a type of investment vehicle that pools money from multiple investors to acquire and manage one or more real estate properties. The properties can include residential, commercial, industrial, and other types of properties, and the trust is managed by professional real estate managers. Investors in the trust receive a share of the income and/or profit generated by the properties.

A real estate fund trust is organized as a trust and it is regulated by securities laws, which generally requires the fund to register with securities regulatory authorities, and to file regular reports on its holdings and performance. The real estate fund trust issues shares, which represent an investor’s proportionate ownership in the trust.

The investors in a real estate fund trust are considered the beneficiaries of the trust and the trust’s assets are held for their benefit. The real estate fund trust is run by a board of trustees which acts as a fiduciary and is responsible for overseeing the management of the fund, ensuring that the fund is run in the best interests of the shareholders.

The real estate fund trust pools money from multiple investors and use it to buy a diverse portfolio of assets, spreading the risk across many different investments. Mutual funds are a popular choice for individual investors, since they provide a way to gain exposure to a diversified portfolio of real estate assets, with professional management, and with a relatively low investment. Additionally, Mutual funds can come in different types, like index funds, bond funds, equity funds and others, providing a variety of options for different investors.

Like any investment, real estate mutual fund trusts carry certain risks.

Market risk: The value of the fund can be affected by changes in the real estate market, such as declining property values, rising interest rates, or changes in economic conditions.

Management risk: The performance of the fund is dependent on the skill and experience of the fund managers. If the managers make poor investment decisions, the fund can underperform.

Liquidity risk: Real estate investments are typically less liquid than other types of investments, such as stocks or bonds. This means it can be more difficult to sell your shares in the fund, especially in a declining market.

Concentration risk: If the fund has a concentrated portfolio of properties in a specific location or sector, it may be more vulnerable to economic or market conditions in that area.

Leverage risk: Some real estate mutual funds use leverage, which involves borrowing money to invest in properties. This increases the potential for higher returns, but also increases the risk of losses if the value of the properties decreases.

It’s important to consider these risks when evaluating a real estate mutual fund trust and to consider it as part of a diversified investment portfolio.

Integrated-Equities Inc. has been appointed distribution agent for this offering. The firm is an Exempt Market Dealer registered in BC, AB, SK and, ON. Cynthia Aasen is a Dealing Representative registered with the firm. This communication is for general information purposes only and is not intended to be a solicitation or advice regarding the suitability of this investment. Important information including the risks and features of this offering are set out in the Offering Memorandum, which should be reviewed in detail prior to investment. Any representations contained herein are those of the Western Wealth Capital & Greybrook. Integrated-Equities Inc. has not taken any steps to ensure the accuracy, completeness or reasonableness of historic or projected information contained herein. Actual results may deviate significantly from the projections set out herein.