When it comes to investments, there is no shortage of opportunities in today’s integrated and global markets. Opportunities in different sectors provide something for every investment portfolio, but a few provide the stability, reliability and consistency of Commercial Real Estate.
Whether you are looking to build wealth, save for life goals, or simply diversify your investment portfolio, there are many reasons to explore Commercial Real Estate as the bedrock of your portfolio:
- Wealth Creation
Investing in CRE creates a win-win scenario by creating cash flow in the present and in the future. Passive income is generated through the property’s rental income, while the value of the asset gradually appreciates.
What makes Commercial Real Estate even more unique is the source of the dividends: rental income, which is negotiated in binding contracts and is sourced directly from the success of a business.
- Stability / diversification
Commercial Real Estate as an asset class behaves differently from stocks, bonds or mutual funds. This is because the stock or money market has little to no correlation with the real estate market, which is backed by human demand for housing and services. This makes CRE one of the most stable assets next to Gold, and an excellent way to diversify portfolio and manage risk.
This is an especially interesting benefit to consider given the continued predictions that the global markets may be headed towards a recession in the future.
- Hard asset / pride of ownership
Real Estate is a hard asset, which can be touched and felt, while having intrinsic value in both the land and the building. The demand for these physical assets is backed by fundamental human needs for shelter and services, versus other forms of assets which are heavily securitized and often speculated.
Because of these factors, commercial real estate is generally considered a relatively strong store of value and an excellent hedge against inflation in the economy.
- Potential Tax Benefits
Depending on the type and structure of investment, certain opportunities may present advantages in regards to tax planning. If the investment is made through an investment vehicle that is eligible for registered investments, then investors may take advantage of programs such as RRSP and TFSA in Canada, while US residents may take advantage of the 401K or IRA programs.
DMCC Holdings’ Performance Fund is eligible for such programs, so our clients consistently build wealth through tax exempt programs.
The above points demonstrate why Commercial Real Estate is the bedrock of every wise investment portfolio, and we are proud to present this opportunity to everyday Canadian Investors through our latest offering: the DMCC Performance Fund. Some key facts about the fund include:
- 5-year investment term
- Annual returns paid quarterly. 7% in Y1 and 8% in Y2
- A 40% uplift is projected at the end of the term in addition to annual returns
- TFSA / RRIF / RRSP eligible
- No US tax filing necessary
- T3 tax document issued to investors every year for Canadian tax filing.
As you know, DMCC Holdings is a Canadian Asset Management firm that uses crowd-funding methods to invest in Commercial Real Estate in the United States. We bring exclusive investment opportunities to Canadians that would otherwise be only available to ultra-high net worth individuals in large private equity transactions. We do this by breaking down large real estate deals into smaller chunks of investments, which allows us to pool money through our real estate fund. This has allowed us to consistently deliver 15-18% annual returns to our investors!