Invest locally. For most programs, when you make an investment directly in your community, the capital goes directly to a physical property where you can see it and touch it. Just as buying goods and services locally helps support the local economy, so does investing.
Know the principals. Unlike most Wall Street investments, you’ll have the opportunity to get to know the sponsors personally and decide for yourself if you believe they are worthy of your investment.
Low correlation to the stock market. DPPs in real estate are generally not directly influenced by the ups and downs of Wall Street. Some investors may want to consider adding this type of investment to their portfolio as a means of diversification.
Tax advantages. DPPs are treated as Limited Partnerships and are not a taxable entity for federal income tax purposes. Instead, the tax benefits incurred by the partnership pass directly through to the investors. Current tax laws allow for pass-through depreciation of the property and interest payments on mortgages directly to investors as a passive income or loss.
Capital pooling. The ability to pool capital through fractionalized ownership allows our sponsors to create projects in sufficient economies of scale that help keep costs down and potentially create greater profit. There are many advantages over going it yourself. |