We hear lots of questions about the fund from investors and potential investors. One of those is about the nature of what it means for you, so I explain if the fund means you own real estate or is this like a REIT…
As I’ve gone into detail with other posts, we’re getting plenty of great questions about the fund. One of those common questions we hear frequently is: will I own the real estate, or does this work like a REIT (real estate investment trust)?
The answer to this one is really simple! Yes, you still own the real estate, and you’ll still get a K-1 at the end of the year. (The Schedule K-1 being the form that each partner gets at the end of the year for tax purposes.) To make it easier to understand; this would be just like if you and I went out and bought duplexes together – lots of them – in the fund. Ultimately, you are a partner in the real estate! So the simple answer to this is no, this isn’t a REIT, and yes, you do own the real estate.
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