TR_October_2021

MINDSET

DIVERSIFY

Why Invest in a Fund? A UNIVERSALLY DIVERSE INVESTMENT OPTION

by Eddie Wilson

3. A fund is not traditionally tied to one asset. It is tied to multiple assets, and some to multiple asset classes. This helps mitigate the liability of investing in a single asset. In a fund, if one asset is underperforming then you can count on the others to pull the median average return to something that is acceptable. When you invest, diversification is the name of the game. A fund provides that for you all in one vehicle. You can also take it a step further by diversi- fying across multiple funds. •

ver my career, I have made many successful investments.

on the fence, here are reasons funds make sense: 1. Funds vet the deal and the operator of the deal itself. Most funds will only invest in someone seasoned who just lacks capital or backing to facilitate the acquisition of deals. The fund has the benefit of looking at multiple deals and underwriting based on a set grouping of parameters and then choosing deals that fit within the return thesis that has been created. 2. Funds provide cashflow or long- term returns but not the time required to make the investment yourself. I have made it a practice to invest in both active investments as well as passive investments. Funds by nature are passive investments. You do not do anything other than invest money and collect returns.

O

I have also had my share of unsuc- cessful investments. I learned three reasons that my investments did not go as planned: 1. I did not understand the deal well enough. This comes in various areas. Maybe it was a new type of investment, or it could have been that I was not mature or seasoned enough to understand howmuch it would take to make the investment perform. 2. I did not have the time to put into the investment or the time to manage it properly. 3. The market conditions shifted. Investment funds should satis- fy those concerns. I am currently a Co-General Partner in a fund, and we have made it our mission to avoid all these concerns for our invest- ment partners. If you have consid- ered investing in a fund but are still

An entrepreneur and visionary by nature, Eddie’s widespread interests have led to successful ventures across the globe, from operating non-profits

and owning an ad agency, to investing in hundreds of real estate projects and building a nationally syndicated radio show. Today, he guides AAPL and Think Realty with his marketing, funding, and real estate investing knowledge to ensure they are the premier organizations in their sectors.

82 | think realty magazine :: october 2021

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