At Thrivegate Capital, we believe investing in real estate shouldn’t be complicated—or only available to insiders. Whether you’re a new investor or someone looking to diversify your portfolio, a real estate investment fund offers a simple and powerful way to grow your money through real estate without the hassle of owning property yourself.
Benefits of Investing in a Real Estate Fund
- Hands-Off Investing: You don’t have to deal with tenants, maintenance, or property management.
- Diversification: Spread your investment across multiple properties, markets, and asset types.
- Expert Management: Your money is managed by real estate professionals who know how to spot value and drive returns.
- Appreciation Potential: While REITs offer income through dividends, real estate funds are focused on growing your investment over time.
- Access to Bigger Deals: Get exposure to commercial and institutional-grade properties usually reserved for large investors.
Real Estate Investment Fund Legislation
Real estate investment funds in the U.S. are regulated by the SEC (Securities and Exchange Commission). Some funds are publicly registered and open to everyone, while others (like private real estate funds) are available only to accredited or high-net-worth investors. These private funds often require a higher minimum investment but offer direct access to real estate assets and potentially higher returns.
REIT vs. Real Estate Fund: What’s the Difference?
REITs and real estate funds are two popular ways to invest in real estate, but they work in different ways and serve different purposes.
REITs vs. Real Estate Funds: An Overview
Key Takeaways
- REITs are companies that own or finance income-producing real estate. They trade on stock exchanges and pay regular dividends.
- Real estate funds are mutual funds or ETFs that invest in REITs, real estate stocks, or even directly in properties. They focus on appreciation over time, not short-term income.
REITs
REITs (Real Estate Investment Trusts) are publicly traded companies that invest directly in real estate. By law, they must pay out at least 90% of their taxable income to shareholders as dividends, which makes them a popular choice for income-seeking investors.
There are 3 types of REITs:
- Equity REITs: Own and operate income-generating properties like apartments or office buildings.
- Mortgage REITs: Invest in mortgages or mortgage-backed securities and earn income through interest.
- Hybrid REITs: A mix of equity and mortgage REITs.
Because REITs are traded on major exchanges, they’re highly liquid and can be bought or sold like any other stock.
Real Estate Funds
Real estate investment funds are more like traditional mutual funds. They pool money from many investors to buy shares in REITs, real estate-related stocks, or even physical properties.
There are several types of real estate funds:
- REIT-ETFs: Trade like stocks and invest in REITs.
- Real Estate Mutual Funds: Can be actively or passively managed.
- Private Real Estate Funds: Invest directly in real estate and are usually only open to accredited investors.
These funds often aim for long-term capital appreciation rather than short-term dividends.
Key Differences
| Feature | REITs | Real Estate Funds |
|---|---|---|
| Income Source | Dividends | Appreciation |
| Liquidity | High (traded like stocks) | Lower (traded at NAV) |
| Access | Anyone with a brokerage account | Sometimes restricted to accredited investors |
| Best For | Passive income seekers | Long-term investors |
Are Real Estate Investment Trusts (REITs) Appropriate for Long-term Investors?
If you’re focused on income, REITs can be a great option. But if you’re looking for capital growth over time, real estate investment funds may be a better fit. Think of REITs as the “dividend stocks” of real estate and funds as the “growth stocks.”
Which Is More Liquid: REITs or Real Estate Funds?
REITs are more liquid because they trade on stock exchanges, while most real estate funds (especially private ones) can take longer to buy or sell. If quick access to your cash matters, REITs might be a better choice.
Can You Short the Housing Market With REITs?
Yes, you can short REITs like regular stocks, but keep in mind—you’ll have to cover their dividend payments while you’re short. If you’re trying to bet against the housing market, you might want to short housing ETFs or homebuilder stocks instead.
FAQ About Real Estate Investment Fund
Is a real estate investment fund a good investment?
It can be! Real estate funds are great for people who want exposure to real estate without owning property. They can provide strong returns through appreciation and reduce risk through diversification.
What’s the difference between REITs and real estate funds?
REITs pay dividends and are great for income. Real estate funds aim for long-term growth. REITs are like real estate stocks; funds are like real estate-focused mutual funds.
Can I invest in a real estate fund with a small amount of money?
Yes, some real estate mutual funds or ETFs allow you to start with just a few hundred dollars. But private real estate funds typically require a higher minimum investment and are reserved for accredited investors.
How do I choose between a REIT and a real estate fund?
If you want income and liquidity, go with a REIT. If you’re focused on long-term growth and diversification, a real estate fund may be a better fit.
FAQ About Thrivegate Capital
What does Thrivegate Capital do?
We help investors build wealth through smart, data-driven real estate investments. Our firm specializes in private real estate funds targeting high-growth, underserved markets across the U.S.
Who can invest with Thrivegate Capital?
Most of our funds are open to accredited investors who meet income or net worth requirements. But we’re actively working on products for retail investors too.
What makes Thrivegate Capital different?
We don’t just buy real estate—we build communities. Our team blends deep market expertise with a mission-driven approach to revitalizing overlooked neighborhoods while delivering strong returns.
Where can I learn more?
Visit www.thrivegatecap.com to explore our investment strategy, read more educational content, or schedule a call with our investment team.
Ready to take the next step? Whether you’re a seasoned investor or just getting started, Thrivegate Capital is here to help you invest smarter in real estate. Let’s connect and grow your wealth together.