Whether you're investing for monthly income or long-term growth, understanding how returns work is key to choosing the right real estate fund on Stake. Here’s a breakdown of how different fund types pay you back:
1. Income-Generating Funds
These funds focus on rental income from operational properties.
Here’s how returns work:
- Regular dividends are paid monthly or quarterly (varies by fund).
- At the end of the fund’s term, properties are sold and any capital appreciation is distributed to investors.
- You’ll benefit from both steady income and potential long-term gains.
2. Development Funds
These funds aim to generate profit through capital appreciation only.
What to expect:
- No dividends or monthly income during the fund’s active period.
- Returns are realized when the developed properties are sold at the end of the cycle.
- Ideal for investors focused on growth over time, not immediate payouts.
3. Projected vs. Actual Returns
Each fund provides projected return estimates based on:
- Market analysis
- Strategy type (income vs. development)
- Real estate performance expectations
⚠️ Important: Projections are not guaranteed. Actual returns may vary based on:
- Market conditions
- Occupancy and rental trends
- Final sale prices of the properties
Pro Tip: Always read the fund’s terms and expected return breakdown before investing. You’ll find it in the “Key Information” section of each fund listing.