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It is generally agreed that a balanced portfolio is a sensible strategy for most folks planning their finances for retirement. But what does this usually look like?

Typically, most people have some mix of directly owned stocks or through a mutual fund or EFT, bonds, and perhaps some other asset classes.

Real Estate is considered a solid alternative to adding to the mix. Why? It often performs as well as the S&P 500 (historically, this has been the case, as seen in this article) but doesn’t tend to fluctuate as stocks do. So there is a little more confidence and predictability to it. You can also leverage real Estate by borrowing to purchase it. So it’s fair to say real estate investments have as much return potential as stock investments.

But Real Estate can be cash heavy and not very liquid, which is an issue for most people. Who wants their money tied up for 10, 20, or 30 years? So how do you include Real Estate in your portfolio without being illiquid?

You could purchase real Estate directly as part of syndication or through a fund/REIT. For most, the last two options are attractive because they require less cash upfront and have some liquidity options.

REITs can also be fantastic instruments to invest in, but REIT’s distribute 90% of the income they produce. That’s great for yield but not so great if you are also looking for upside gain on the real estate’s value (which is what we all want, isn’t it?).

This is precisely why we created the CalTier Portfolio Fund.

Our goal was to create a fund that had an ongoing income distribution to investors as well as providing some level of realized upside. When you invest in the CalTier Portfolio Fund, you purchase units in the Fund. As we invest in cash-flowing multi-family assets, the fund size increases, and we aim to distribute an income to you. However, as the assets under management (AUM) grow, so too should the value of the units you own in the Fund. This is called the Net Asset Value (NAV).

When writing, 100 Units in the Fund are valued at $500. Each quarter we ‘test’ the Fund to see what the NAV is and adjust the unit price accordingly. We encourage you to read the offering circular for more information on this.

The CalTier Portfolio Fund also has a relatively flexible redemption plan (again, see page 43 and 44 of the offering circular) in that you can request your investment back at any time.

We have tried to create ‘the best of both worlds’ so that there is an income distribution AND upside potential. There is a risk with any investment, so please read our FAQ page and feel free to message us to ask questions.

Do you have a Self Direct IRA?

If you have a self-directed IRA, you can use that to invest in the CalTier Fund. Many of our investors do, and we will be happy to help you with that.

If you are ready to go and want to get started, click here and create your investment process.

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  • Diverse Multi-Family Portfolio

  • Open to Non-Accredited Investors

  • $500 Minimum
  • Low Fees*

  • Redemption Flexibility*

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