How To Make A Higher Return In A Low Yield Market?
Today’s investment real estate market is characterized by too much money chasing after too few opportunities.
The complexity of the world’s political climate combined with the Federal Reserve’s decade-long low interest rate policy has left many real estate investors believing they have no other choice but to place their capital in high-risk investments that offer only the tiniest of inflation-adjusted returns.
Investors who decide not to take part in this game of chance park their money on the sidelines, only to slowly but surely see inflation eat away at their nest egg.
In the United States, an increasing number of both accredited and non-accredited real estate investors are discovering that placing some of their capital in global real estate funds offers a way to take advantage of the market uncertainty while protecting their capital at the same time.
There are multiple ways that global real estate funds offer investors protection against the uncertainty of today’s market place where a black swan event could cause events to suddenly become turbulent in the blink of an eye.
TwinRock Partners takes three specific steps when vetting a country, a market place, and a specific building before including the real estate in one of its global investment funds:
First, markets are systematically identified where real estate has become temporarily distressed and under-valued.
Next, once a market place has been targeted, office and multi-family buildings with purchase prices between $10,000,000 and $40,000,000 are selected for further due diligence prior to acquisition.
Third, only property that can be acquired at a discount and that will provide profit through both the annual rental stream and the net gain at disposition are added to the real estate fund.
An anticipated holding period of up to seven years, combined with proactive asset management and aggressive marketing and leasing, will allow TwinRock Partners to maintain and improve the performance and profitability of the properties acquired, while also capitalizing on future rental increases and pricing growth.
With targeted cash flow returns of 6% to 10% and gross IRRs of between 14% and 16% on an annually compounded basis, a growing number of property investors in the U.S. are allocating part of their capital to global real estate investment funds.
TwinRock Partners is a real estate investment company, primarily focused on investing in unique or contrarian opportunities while providing the best in asset class management.