|
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| Benefits/ Advantages | Real Estate Multi-Strategy Funds |
Real Estate Single Property Private Equity |
Real Estate Pooled Private Equity |
REIT Mutual Fund |
Public Real Estate (REITs and REOCs) |
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| Higher, entrepreneurial returns | H |
H |
L |
L |
L |
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| Highest risk-adjusted return prospects | H/risk diminished by diversification |
M/subject to home runs & strike outs |
L/smooth income little appreciation beyond "index" |
L/stock market's perception of value prospects |
L/stock market's perception of value prospects |
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| Value creation by taking advantage of inefficiencies among asset and capital markets | H |
H |
L |
L/not the goal |
L/not the goal |
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| Asset value driven by actual property performance | H |
H |
H |
L/stock market's perception of value prospects |
L/stock market's perception of value prospects |
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| Finite life, self-liquidating investment | H/realize RE value |
H/realize RE value |
H/realize RE value |
L/realize stock market value |
L/realize stock market value |
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| Greater safety | H |
M |
H |
H/market risk with mutual fund diversification |
M |
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| Best access | H |
M |
M |
H |
H |
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| Reduction of risk | H |
L |
H |
M/market risk with mutual fund diversification |
M/market risk |
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| Efficient approach to real estate investing | H |
L |
L |
M/timely investment |
M/timely investment |
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| Liquidity | L |
L |
L |
H |
H |
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