Building Wealth Through Real Estate: Introducing the Balcomie Income Fund

The Balcomie Income Fund 1, LLC (the“Fund”) is a private placement real estate investment/ Regulation D, Rule 506 (b) offering for accredited investors only.  The Fund will target existing Balcomie assets as well as new acquisitions/developments in the Self Storage, Industrial, and Residential space. In addition the Fund pays monthly distributions with a 10% annual return to investors.*

What is a Real Estate Income Fund?

In general terms, any “income fund” is simply a pool of capital that has been assembled on behalf of a group of investors. There are literally tens-of-thousands of different types of investment funds, including equity funds, bond funds, money market funds, mutual funds, and hedge funds. While direct ownership of real estate has been a popular investment for centuries, recently many investors have also started investing in real estate through participation in a fund.

By investing in the Fund, investors will have a semi liquid position and receive a 10% return on their money, paid out monthly.

The Balcomie Income Fund 1 LLC is focused exclusively on investing in income-generating real estate currently owned by Balcomie Capital or for future opportunities. Real estate income funds provide another entry point for those looking to invest in large self storage or industrial real estate assets/portfolios. Real Estate Income Funds just like Balcomie Income Fund 1 LLC are particularly appealing to retail investors who want to own institutional quality real estate that would normally be out of reach for them. The Fund pools capital from many investors, and then Balcomie Capital(the “Sponsor”) oversees all the fund’s activities, including performing due diligence, underwriting, and property management. 

3 Distinct Benefits of Investing in a Real Estate Income Funds 

‍1. Diversification

The ability to diversify in real estate funds has attracted conservative investors that want to avoid the concentration risk that often accompanies purchasing one piece of real estate. Typically, real estate investing requires a large down payment in order to obtain a loan with reasonable terms, tying up a significant portion of investors’ wealth in a single asset. This Fund allows an investor to often place a smaller amount of cash into a highly diversified portfolio, therefore mitigating risk through diversification. Not only does The Fund allow investors to diversify in different pieces of real estate classes but investors can also diversify their investment by asset type and tenants. Asset types can have varying market cycles. Diversifying one’s investment across asset types and geography can potentially insulate their investment from market volatility.

2. Liquidity

One of the largest benefits that The Fund offers is the ability to have your capital returned after only 12 months of seasoning. After 12 months seasoning, the investor can call their capital back and the sponsor will return it within 180 days if capital reserves allow.

3. Ability to Optimize Both Inflationary and Deflationary Market Cycles 

Additional Potential Benefits of Real Estate Income Funds

• Passive income monthly
• Tax advantages through depreciation, interest deductions, and the fund itself being able to 1031 exchange proceeds from the sale of one property into another without realizing capital gains.
• Low minimum investment amounts allow for portfolio diversification  (The Funds minimum investment amount is $50,000)
• Professional real estate expertise, including acquisition, financing, property management and asset management from a sponsor with over 12 years of experience
• Elimination of day-to-day management headaches

Click here to learn more about the Balcomie Income Fund.

‍