CRE Income Fund Review – Benzinga

If you are considering investing in commercial real estate but are nervous due to bearish predictions about the future of the real estate market, the CRE Income Fund could be an option worth considering. This highly diversified commercial real estate fund is comprised of assets in high-demand sectors such as warehousing, data centers, distribution and storage. Despite widespread concern about the state of the commercial office market, the CRE fund’s assets are part of a sector that continues to be in high demand nationally.

CRE’s tertiary buildings offer numerous potential advantages to investors compared to investments in the residential or tertiary sector. Funds with commercial assets tend to offer higher returns, thanks to a combination of long-term leases and high-quality tenants, which can lead to predictable income and asset appreciation. The reason for the increased profit potential is that most of the CRE Income Fund’s assets are rented with NNN leases.

NNN leases are a benefit to investors because, in addition to rent, tenants also pay a prorated share of property taxes, maintenance and insurance of the property. On a non-NNN lease (such as a residential lease), these expenses come out of the owner’s or investor’s pocket before the rental profits can be recognized. The NNN feature provides benefits not only in terms of income, but also in long-term asset appreciation.

The value of commercial real estate assets is linked to its net operating income (NOI) and is less exposed to the supply and demand dynamics of other markets. If a business asset has a high NOI in the midst of a recession, its value should be more resilient to the downturn. If the market increases and commercial rents increase, the NOI is likely to increase. CRE’s focus on these types of NNN assets can prove profitable for investors in many potential ways.

For an investment platform to be successful, it must serve customers well, build trust and make them feel comfortable, especially when the buy-in exceeds $10,000.

The CRE Income Fund platform delivers in terms of customer service and it is easy to see that it is customer focused. Its Facebook page is informative and includes high ratings from customers and users. Customers can contact the site by telephone during business hours or by email at any time. The Contact Us section is easy to find and email inquiries are responded to quickly.

The platform includes an excellent FAQ section and a glossary of terms where a potential investor can access information on how the platform works, its investment objectives and a glossary of investment-specific terms (NOI, NNN lease). The overall customer service effort is exceptional.

The designers of the CRE platform attach due importance to the security expected of a financial services platform. Email authentication is required and you submit your photo ID for visual verification. These steps are necessary before you can start investing, as well as to prove your status as an accredited investor. Security features are robust and multi-layered, including encrypted SSL certificates for the site itself.

The CRE Income Fund is open to accredited investors based in the United States over the age of 18. The minimum investment is $10,000, which by accredited investment offering only standards represents a relatively small buy-in. Management fees have just been lowered from 2% to 1%.

Another important advantage is that the fund offers a secondary market in which investors can liquidate their shares, subject to the restrictions described in the investment prospectus and the share contract. This flexibility can be invaluable to passive income investors, many of whom may be reluctant to commit funds to a private real estate investment trust (REIT) or real estate crowdfunding offering with a long holding period.

In exchange for a $10,000 contribution, investors gain access to a fund that offers a 10% annual dividend yield in addition to capital appreciation. In addition to being long-term, most NNN leases feature graduated rent increases, and as NOI increases, investors can benefit from faster capital appreciation. Every investment carries some risk of loss, even if it is an NNN trading asset, and past performance does not guarantee future success.

The user experience on the CRE Income Fund platform is top-notch. After registration, the user dashboard is intuitive, easy to use and attractive. Everything you need to know about your account is easily accessible and you won’t have to search for it. The icons for the user couldn’t be better.

The platform onboards all new accounts within 24 hours. It is affiliated with a broker, North Capital Securities, which requires verification of your ID and accreditation before you can start investing. If you plan to invest as a business entity, it must be properly registered with the Secretary of State of the country where it exists. Overall, it’s a great user experience.

The CRE Income Fund is not the only one offering passive income-oriented real estate investments. Competing platforms include Crowdstreet, EquityMultiple and Streitwise.

Two of these platforms (EquityMultiple and Crowdstreet) are exclusively accessible to qualified investors but have different buy-ins. Crowdstreet’s buy-in is $25,000, while EquityMultiple’s buy-in is $5,000. Streitwise is open to accredited and non-accredited investors. Take a look at the table below to learn more about the different platforms and their individual pros and cons.

The CRE Income Fund is a solid platform for qualified investors seeking passive income and asset appreciation. The fund’s carefully selected set of assets includes sectors that are expected to see continued demand over the long term. Most of its assets are properties with NNN leases. The functionality of the site itself and its customer service program are equally high. The $10,000 buy-in isn’t cheap, but it’s reasonable considering what investors get access to in return. This site would get a 5-star rating with a mobile app and an opt-in option for non-accredited investors.