Wall Street Offers a New Way to Invest in Commercial Real Estate

Posted on March 23rd, 2017 at 4:07 PM
Wall Street Offers a New Way to Invest in Commercial Real Estate

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the second in a pair of posts about how interval funds offer a new way to invest in property by investing in the property directly, rather than in real-estate investment trusts (REITs).

However, the new approach has risks. One risk relates to valuation. Stocks and bonds are publically traded approximately 250 days a year but commercial real estate tends to be only privately appraised, once every three months. Because the investments are only appraised once every three months, the accuracy of the appraisals always are a concern for investors.

Another risk is that the real estate sector undergoes up and down market cycles. There are a plethora of market risks that can trigger an imbalance in the supply and demand for real estate. The consequences of the 2008 financial crisis are a good example of the risks associated with the up and down market cycles of real estate investments.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial investors including Securities FraudUnauthorized TradingBreach of Fiduciary DutyRetirement Planning Negligence, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC

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