FAQ

Real estate is property, including the land or buildings on it. Real estate is a tangible asset and, as such, it can be bought, sold, leased, or rented. When someone purchases real estate, they are buying the land and any buildings or other structures on it. The term “real estate” can also refer to the business of buying, selling, or renting land or property.

Many people are attracted to real estate investing because it offers the potential for higher returns with relatively little effort. This is also known as passive income. Passive income is defined as earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. A few examples of passive income streams are: rent from investment properties, dividends from REITs, owning a self-storage facility, or hard money lending.

Owning real estate can be a way to increase your income in a consistent way. If you own commercial or residential real estate, you can rent to tenants to gain monthly income. However, a word to the wise if this is something you are considering: be sure to do your research and speak with a qualified professional to get an idea of what you’re getting into.

Real estate appreciation is when the value of a home or property increases over time.

If you own real estate, it will likely increase in value naturally with the market, but you can also force appreciation. You can do this by making strategic improvements to the property to increase its value. For example, you could renovate the kitchen or bathrooms, install energy-efficient appliances or solar panels, or add a pool or deck. By adding value to the property, you will usually increase its resale value and rental income potential. It’s important to note that appreciation is not guaranteed and will come down to choosing the right property to invest in.

Real estate is known to have less correlation with public markets, which means that when stocks are down, you’ll probably notice real estate is up.¹ This diversification can help protect your portfolio from market volatility.

Real estate is also a physical asset. This tangibility gives investors added peace of mind knowing that their investment is something they can see and touch, unlike stocks and mutual funds, which can fluctuate greatly in value.

An inflation hedge is an investment that retains its purchasing power during periods of inflation. While most investments lose value when inflation rises, there are a few investments, like real estate and gold, that tend to hold their value or increase in value during these periods.

Real estate can be used as an inflation hedge in a few ways.

First, the impact of inflation on debt. When home and property prices rise, it decreases the loan-to-value of any mortgage debt, which creates a discount. Because of this, the equity on property increases, but your mortgage payments stay at a fixed-rate.

Inflation can also benefit real estate investors that earn income from rental properties. This is because if the price of the home is higher, and usually so is the rent. If you’re able to boost the cost of rent while keeping the mortgage the same, this can be an opportunity for an increase in income.

Last, real estate investing can be an inflation hedge tool due to property values increasing over time that usually stay on an steady upward trend. As inflation increases, the value of your property will likely increase as well. This means that your investment will not only hold its value, but it could also increase in value, giving you a nice return on your investment.

No, Concreit is not a crowdfunding portal. Concreit’s investments allow non-accredited investors to participate through a SEC-qualified Regulation A+ Tier 2 offerings, such as Concreit Fund I LLC.

Concreit designs their product for those looking for the familiar simplicity of a savings account or digital wallet, but with a higher return potential by utilizing private real estate investments.

With Concreit, you don’t have to deal with the stress of picking and choosing individual investments, Concreit fully manages your investments with an experienced team of professionals. Your money is diversified across hundreds of high-returns income-focused first-lien mortgages in the United States.

This is one of the more unique features of Concreit. They are proud of the technology that they have built which allows them to better assist investors with using their money when it’s needed.

Customers may request a withdrawal at any time. Rather than waiting for the fund to only sell assets, Concreit is able to fund withdrawals through cash on hand, income from the assets, and return of principal when loans are paid off. Since these sources of funds are irregular, Concreit sometimes will delay withdrawals until they have funds to cover a withdrawal request – in periods of high requests, such as downturns, the waiting list for withdrawals may be long. In normal times, the wait is about a week.

Concreit follows disciplined underwriting guidelines for our investments and prioritize investor capital preservation while achieving income.

Each dollar you invest in Concreit’s Cash Flow fund is backed by real estate that has more value than the amount you invested. Concreit Fund I typically seeks to protect your principal through investing in first-lien mortgages that on average are about 130% of the dollar value to accommodate potential negative circumstances.

Concreit takes security very seriously. Concreit uses bank-level encryption to keep your personal information safe. They do not sell your data. Your personal information is used with third parties through secure and encrypted methods during your account set up to help comply with regulatory requirements.

Investing in either real estate equity or real estate debt could add diversification to a portfolio. Before investing, you should look at the pros and cons to determine which would be right for you.