Sample Alternative Funds
Sample Alternative Funds
Perch Wealth offers a variety of investment solutions for accredited investors looking to reduce volatility, mitigate risk, and increase passive income. Here are some of the income funds available through Perch Wealth today.
ExchangeRight Essential Income Fund
The ExchangeRight Essential Income Fund is a real estate investment trust (REIT) with 254 identified single-tenant, net-leased properties across 196 markets in 29 states. This $531 million offering has targeted investment-grade and historically recession-resilient tenants such as Dollar General, Family Dollar, Walgreens, CVS Pharmacy, Tractor Supply, Hobby Lobby, and Walmart Neighborhood Market. While retail has struggled, generally, in recent years, the nature of these businesses has historically made them uniquely positioned to weather economic uncertainties and periods of economic downturn, as evidenced during the Great Recession and again during the COVID-19 pandemic. Moreover, the portfolio strives for inflation protection through the potential for growing cash flow distributions backed by long-term leases that provide portfolio rent increases in both the primary and option lease periods.
Distributions from this REIT are 100% tax-deferred and scheduled to be paid monthly, assuming funds are available. The investment minimum is just $25,000, making this an excellent option for cash investors looking to add real estate to their portfolios while otherwise preserving liquidity.
VineBrook Homes Trust
VineBrook Homes Trust (VHT) looks to capitalize on the growing demand for single-family rental (SFR) housing. Specifically, the fund looks to invest in modestly-priced SFR workforce housing. This strategy reflects the slow pace of entry-level new home construction. Today, fewer than 9 percent of new homes constructed are priced at $200,000 or less. This has left many with no choice but to rent as home ownership becomes increasingly unattainable. VHT has grown its portfolio of SFRs from 4,200 units in Q4 2018 to almost 13,700 SFR homes in Q1 2021. The ownership team deploys a value-add strategy to improve the condition of these homes, making them attractive to renters willing to pay top dollar. The portfolio has achieved a 98.7 percent stabilized occupancy rate, with an average monthly rent of $1,044 per home with approximately 1,320 square feet.
This REIT is a collaboration between VineBrook, whose operators have been managing SFRs since 2007, and NexPoint, which brings its multibillion-dollar investment platform and significant value-add experience.
VHT is a $1 billion offering for accredited investors, with a $50,000 minimum investment. Accrued distributions are anticipated to be tax-deferred with growth potential, paid on a monthly or quarterly basis, assuming funds are available. VHT could potentially be an excellent option for those interested in investing in a high-demand real estate product type.
Bluerock Preferred Stock
Anyone who is interested in investing in primarily Class A, institutional-quality apartment buildings should consider purchasing Bluerock Series T Redeemable Preferred Stock. These are shares of the Bluerock Residential Growth (BRG) REIT, a publicly-listed real estate investment trust that has a diverse portfolio of exceptionally high-quality live/work/play apartment communities located in some of the nation’s top-tier growth markets.
Bluerock Preferred Stocks are being offered for as little as $25 per share with a reasonable $5,000 investment minimum. The REIT is scheduled to pay dividends monthly, assuming funds are available.
Because BRG is traded on the New York Stock Exchange (NYSE), these preferred shares are redeemable and provide investors with liquidity from day one.
Cantor Fitzgerald Income Trust
The Cantor Fitzgerald (CF) Income Trust is a publicly-registered, non-traded REIT focused on investing at least 80 percent of funds in multifamily, office, industrial, and other income-producing commercial real estate properties as well as stabilized, currently income-producing real estate debt (first mortgages, subordinate mortgages, and mezzanine capital). The company focuses on investing in long-term net-leased properties as a way of hedging against market cycle volatility and minimizing properties’ ongoing capital requirements, which, under the net lease structure, are borne by the tenant. These leases also contain rent escalations that further strive to insulate the fund from potential inflation. Moreover, the portfolio’s industrial properties are positioned to capitalize on the growing demand for logistics and e-commerce facilities. The fund’s multifamily portfolio offers attractive, risk-adjusted return potential with low historical volatility relative to other real estate product types.
CF Income Trust’s diversity of commercial real estate (CRE) assets is further balanced by the 20 percent of funds set aside to selectively acquire and hold real estate-related securities to support the fund’s overall investment objectives.
The minimum investment into the CF Income Fund is just $2,500 for Class D, Class S, or Class T shares. Class I shares require a more substantial $1,000,000 minimum investment. The fund anticipates distributions paid to investors each month, assuming availability of funds. The CF Income Trust will appeal to investors seeking to invest in a range of CRE product types, including both debt and equity.
Are you ready to consider investment options that seek to provide greater, more predictable returns on your investments? If so, it might be time to consider investing in a high-yield real estate fund. Contact us today. We would be happy to discuss available options with you to determine which combination of investments would be best for you based on your specific investment objectives.
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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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- 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.