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Why Invest in the Fund Structure?

By: Max Sharkansky, Managing Partner
  • Max Sharkansky: Whether it's our fund or not, I would highly recommend for any investor to invest into funds. First of all, as an investor, you've got automatic diversification across several properties, as opposed to just investing in a single property. If it goes well, it goes well. If it doesn't, it doesn't. The chances of that happening across a portfolio of properties is much lower.
  • Max Sharkansky: I also recommend for investors to invest into funds because the sponsors promote. Their participation of the profit is crossed across every single asset in the fund. If one deal is a bust, it's going to drag down their profit participation across the entire fund.
  • Max Sharkansky: Whereas, if an investor invests with a sponsor in their syndication, and they're in seven or eight of their syndications, and one deal goes bad, it in no way affects the other properties that they've invested in. They would get paid fully, and they will collect 100 percent of their promote on every single property.
  • Max Sharkansky: As an investor, if I were an individual investor, I would only invest into funds because it's easy, it's efficient, and I've gotten much lower risk, and I'll make more money, ultimately.

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Max Sharkansky, Managing Partner
Posted By Max Sharkansky, Managing Partner

Max is co-founder of Trion Properties and oversees all aspects of acquisition, disposition, and property analysis for the company. Since founding Trion he has led the acquisition, renovation and disposition of over $300,000,000 in mismanaged and distressed assets, primarily in multifamily, yielding an average IRR in excess of 30%.

Max's driving objectives in investing are to deliver outsized returns without taking outsized risks and the words he lives by are that "real estate doesn't kill people, debt does."