Home » Investment Fund » How the fund works

1. Commitment of Capital:

You commit your capital to the fund by purchasing units or shares, effectively becoming a unit investor.
Your investment, combined with contributions from other investors, forms the pool of capital that the fund will utilize to acquire, manage, and potentially sell residential properties.

2. Benefiting from Professional Management:

You rely on the expertise of the fund’s management team, who are responsible for executing the fund’s investment strategy and making informed decisions on property acquisitions, financing, and property management.

3. Property Acquisition and Diversification:

The fund actively seeks and acquires various residential properties according to the defined investment strategy.
Your investment is part of a diversified portfolio of residential assets, which can help spread risk and reduce exposure to fluctuations in any single property’s performance.

4. Share in Investment Returns:

Rental income generated from the properties is distributed periodically to investors, providing a steady income stream.

5. Potential for Capital Appreciation:

Over time, your investment has the potential to appreciate in value as the fund’s residential properties appreciate due to market dynamics, property improvements, and growing demand.
This appreciation can contribute to the growth of your investment’s overall value and enhance your wealth over the long term.

6. Exit Strategy and Decision Making:

You actively participate in discussions about the fund’s exit strategy, which may involve decisions about selling properties or continuing to hold them.
Your input, along with other unit investors, helps shape the fund’s direction and aligns with your investment objectives.

7. Potential for Reinvestment or Liquidation:

Depending on the fund’s decisions and market conditions, you may have the opportunity to reinvest your proceeds in new properties or participate in the liquidation of assets if that becomes the chosen strategy, allowing you to adapt to evolving market conditions.

8. Realizing Your Investment Goals:

Ultimately, your investment in the residential real estate investment fund serves as a pathway to achieving your financial objectives.

Investing in a residential real estate investment fund offers you a structured and professionally managed approach to gain exposure to the real estate market, diversify your investment portfolio, and potentially achieve your financial goals.

Learn more about investing in Hanseatic funds