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Cash Investments

Diversify with Private Real Estate Funds

Given the uncertainty and volatility in financial markets over the past several years, investors have become more strategic about their investment allocations and strategies. While they are still looking for attractive income and growth focused investments, they are looking for solutions that are historically less correlated to equity markets and, as a result, more diversified. To strive to meet these demands, we strategize with clients to build custom portfolios that are designed to attempt to mitigate overall portfolio risk, reduce volatility, and increase passive income and growth.

Investment Opportunities

Accredited real estate investors are in a unique position to diversify their investment strategy through private real estate funds. We offer a range of options to fit your circumstances, lifestyle needs, and financial objectives.

  1. Preferred Equity Offerings
  2. Real Estate Investment Trusts
  3. Interval Funds
  4. Other Income Funds


Preferred Equity Options

Preferred equity, or preferred stock, is often considered a hybrid security. While it shares many characteristics with debt instruments, it also offers investors the opportunity to seek to mitigate risk. Unlike common equity, preferred equity investors have the possibility of receiving a fixed annual return on their initial investment, and the potential for cash flow distributions are received prior to common stock shareholders. These options are attractive to investors as they target higher-fixed income payments, and shareholders have priority claim over dividends and liquidation proceeds if a company defaults.

Companies leverage preferred equity as a unique form to finance real estate investments or developments. There are different types of preferred equity, offering investors the potential for varying returns and risks. The most common include cumulative, callable, convertible, participating, and adjustable-rate preferred stock (ARPS).


Real Estate Investment Trusts

A real estate investment trust, or REIT, is a corporation that owns and/or manages income-producing commercial real estate. When individuals buy a real estate investment trust (REIT) share, they are purchasing a share of the company that owns and manages the rental property. Shares of publicly traded REITs can be purchased and sold as easily as other stocks, even on a daily basis, thereby providing significant liquidity to investors.

Many types of REITs exist. Most focus on a specific product type (e.g., retail, hospitality, multifamily housing, senior living facilities, student housing, office space, self-storage, industrial, and so on) or geography (e.g., commercial real estate in the Northeast vs. Southwest).


Interval Funds

An interval fund is a type of closed-end fund that offers liquidity to investors at stated intervals – typically quarterly, semi-annually, or annually. This means investors can sell a portion of their shares at regular intervals at a price based on the fund’s net asset value. However, there is no guarantee that investors can redeem their shares during a given redemption period. As such, interval funds should generally be treated as long-term investments that, in turn, will usually offer the potential for an illiquidity premium in exchange.

Interval funds can be used to invest in many securities and asset classes, including, but not limited to, real estate. A single interval fund is not limited to investing in a single asset class; in fact, it can invest in various assets as a means of diversifying its holdings.


Other Income Funds

A real estate income fund is a specific subset of funds that focuses exclusively on investing in income-generating real estate. Real estate income funds provide another entry point for those looking to invest cash in large commercial real estate portfolios. Real estate income funds are particularly appealing to retail investors who want to own institutional-quality real estate that would otherwise be out of reach to them. A real estate income fund pools capital from many investors, and then the fund’s sponsor oversees all of the fund’s activities – from due diligence and underwriting to property renovations, stabilization, ongoing management, and eventually disposition. Depending on the nature of a real estate income fund, the fund can have different investment minimums as well as lengthy hold periods, and, therefore, the capital invested should be considered illiquid during that hold period.

There are dozens, if not hundreds or thousands, of different types of investment funds, including equity funds, bond funds, money market funds, mutual funds, and hedge funds.

Learn which investment fund is best suited to help you meet your investment goals.

Perch Wealth provides you with access to institutional-quality real estate, management, financing and state of the art 1031 exchange processing.



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Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Perch Wealth and Arkadios are not affiliated through any ownership.

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Real Estate / 1031 Risk Disclosure:
  • There’s no guarantee any strategy will be successful or achieve investment objectives;
  • All real estate investments have the potential to lose value during the life of the investments;
  • The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
  • All financed real estate investments have potential for foreclosure;
  • These 1031 exchanges are offered through private placement offerings and are illiquid securities. There is no secondary market for these investments;
  • If a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
  • Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits;
  • Tax benefits are not guaranteed and are subject to changes in the tax code.