Explore Private Real Estate Investment Opportunities

Whether you're looking for diversified exposure or direct access to private real estate opportunities, Vennre empowers you to tap into the potential of private market investing. Investment minimums begin at $25,000.

What is Private Real Estate Investment?

Private real estate investment, also known as alternative investment, refers to the acquisition of real estate assets that are not traded on public exchanges. These investments can include commercial properties, residential buildings, land, and specialty properties such as warehouses or healthcare facilities. Unlike traditional public market investments, private real estate requires substantial due diligence, a long-term investment horizon, and often larger capital commitments.

Investors in private real estate typically seek attractive income, solid risk-adjusted returns, effective diversification relative to a traditional stock/bond portfolio and an economic hedge against market volatility. They may invest in private real estate through specialized platforms, providing opportunities for direct property ownership or participation in exclusive investment funds. These investments are often characterized by their potential for appreciation in property value, rental income, and tax advantages.

Due to the illiquid nature of private real estate, investors should be prepared for a longer holding period and should carefully assess their risk tolerance and financial goals. If you're new to this type of investment, it is recommended that you work with experienced advisors to navigate the complexities, regulatory environments, and opportunities within private real estate investing.

Types of Private Real Estate Investment

Private real estate investment encompasses various strategies, each with a distinct risk and return profile. These strategies include core, core-plus, value-add, and opportunistic investments:

Understanding these distinct categories is essential for developing a diversified private real estate portfolio that aligns with your financial goals and risk tolerance.

Why Invest in Private Real Estate?

Private real estate has outperformed US equities and fixed income on both an absolute and risk-adjusted basis since 2000. Its positive track record, low correlation with public market indices, and the potential for stable cash flow make it an attractive option for investors seeking diversification and long-term wealth creation. Additionally, private real estate investments may offer various tax advantages such as depreciation deductions and the ability to defer capital gains taxes through like-kind exchanges.

However, investors should also be aware of the associated risks of private real estate investing, including illiquidity, volatility, limited information, and potential for loss. It is crucial to conduct thorough due diligence before committing to any private real estate investment opportunity.

Real estate has historically provided attractive income relative to traditional options.

Sources: NCREIF, FTSE, S&P 500, Bloomberg. Analysis by Franklin Templeton Institute.

Higher historical return than bonds, with less volatility than stocks.

Sources: NCREIF, FTSE, S&P Dow Jones Indices, Bloomberg and Morningstar Direct. Analysis by Franklin Templeton Institute.

Rent payments from leases are the main income source for all property types. Commercial leases are long-term and capital-intensive, offering landlords protection against early termination. Multifamily and industrial leases often have more frequent rent adjustments. This creates a stable income stream, driving returns in the asset class and offering the potential for property appreciation. The stability of this income supports superior risk-adjusted returns for private real estate compared to the S&P 500 and publicly traded REITs.

Real Estate as a Potential Hedge Against Inflation

Commercial leases often include clauses that adjust rent payments for inflation, ensuring that the investment's income stays aligned with rising costs. Furthermore, the favorable supply and demand dynamics during inflationary periods enable landlords to transfer expenses to new tenants through higher rents. These factors have consistently allowed private real estate rents to outpace inflation in recent cycles.

Sources: Clarion Partners Investment Research, NCREIF, BLS, Moody's Analytics.

Benefits of Investing in Real Estate

Like any other asset class, investing in real estate has its pros and cons. Adding real estate to your portfolio with Vennre could bring you long-term benefits, such as:

  • Historically outperformed equities, publicly traded REITs and many others
  • Natural hedge against inflation
  • Reduced correlation to public markets
  • Opportunities for income and growth
  • Tax-efficient benefits

How is Investing in Real Estate on Vennre Different?

Rigorous Vetting Process

All real estate opportunities undergo a stringent multi-step vetting process designed to comprehensively review them from various risk perspectives. This ensures a resilient investment structure aimed at minimizing surprises.

Strong Track Record

Vennre has raised over $15mm across 10 real estate, private equity and venture capital offerings, with more than $40K cumulative in principal repaid to investors thus far (as of 13.8.2024).

Experienced Managers

We exclusively partner with top-tier fund & asset managers, each boasting an average of over 30 years of experience across diverse strategies and asset classes.

Unparalleled Access

Our robust partnerships and relationships provide investors with access to premier real estate opportunities that were once exclusive to institutional investors.

Lower Minimums and Transparent Fees

Investment minimums begin at $25,000. Additionally, we offer investors a more transparent and lower fee structure compared to other investment platforms, who frequently diminish investors' IRR with miscellaneous fees.

faqs

Find answers to your most common questions here.

What is the minimum investment amount for private real estate opportunities on Vennre?

Investment minimums for private real estate opportunities on Vennre start at $25,000 (or £/€/CHF depending on the deal's origin).

How long are the typical holding periods for private real estate investments?

Private real estate investments typically require a longer holding period compared to public market investments, usually ranging from 3-10 years.

Are there any tax advantages to investing in private real estate through Vennre?

Yes, Vennre optimizes for tax implications such as depreciation deductions and the ability to defer capital gains taxes by establishing structures that decrease tax exposure.

How does Vennre vet its real estate opportunities?

All real estate opportunities on Vennre undergo a rigorous vetting process to comprehensively assess risks and ensure a resilient investment structure.

What sets Vennre apart from other investment platforms for private real estate investing?

Vennre offers investors a lower minimum investment amount, more transparent and lower fees, and unparalleled access to premier global real estate opportunities through our strong partnerships and relationships with top-tier managers.

What are the different types of private real estate investments available?

Private real estate investments can take various forms, including direct ownership of residential, commercial, or industrial properties; investing in real estate funds or syndications; and participating in private REITs or real estate crowdfunding platforms. Each type of investment has its own risk-return profile and liquidity characteristics, allowing investors to choose according to their preferences and financial goals.

What are the risks associated with private real estate investing?

Private real estate investments come with several risks, including market risk (property values can fluctuate based on economic conditions), liquidity risk (real estate is not easily sold or traded), and management risk (the performance of a property can depend on the effectiveness of its management). Additionally, there are risks related to financing, such as interest rate fluctuations and the availability of credit. Conducting thorough due diligence and diversifying across different property types and locations can help mitigate these risks.

How does private real estate provide diversification benefits to an investment portfolio?

Private real estate investments often have low correlation with traditional asset classes such as stocks and bonds, making them an effective tool for portfolio diversification. By including private real estate, investors can reduce overall portfolio volatility and enhance risk-adjusted returns. Real estate can provide a stable income stream from rental properties, which can further contribute to portfolio stability.

Create your wealth now

Begin your real estate investment journey with Vennre today and unlock the potential of innovative, high-growth market opportunities!