CRE Income Fund Review

CRE Income Fund Ratings at a Glance

CRE Income Fund Product Offering

If you have been looking to make an investment in commercial real estate but are skittish because of bearish predictions about the future of the real estate market, the CRE Income Fund could be an option worthy of consideration. This highly diversified commercial real estate fund consists of assets in high-demand sectors such as warehousing, data centers, distribution and storage. In spite of the general concern regarding the state of the commercial office market, the assets in the CRE fund are part of a sector that is still in high demand nationally. 

The NNN Lease Advantage

CRE’s commercial properties offer a host of potential advantages to investors compared to investments in the residential or office sector. Funds with commercial assets tend to offer higher returns, thanks to a combination of long-term leases and high-quality tenants, which can lead to predictable income and asset appreciation. The reason for the increased profit potential is that most CRE Income Fund assets are leased with NNN leases. 

NNN leases are an advantage for investors because, in addition to the rent, tenants also pay a prorated share of the property taxes, maintenance and insurance on the asset. On a non-NNN lease (such as a residential lease), those expenses come out of the landlord’s or investor’s pocket before they can count profit from rents. The NNN feature offers advantages not just in income but long-term asset appreciation. 

High Net Operating Income 

The value of commercial real estate assets is tied to its net operating income (NOI) and is less exposed to the supply and demand dynamic of other markets. If a commercial asset has a high NOI in the middle of a recession, its value should be more resistant to the downturn. If the market rises and commercial rents increase, NOI is likely to go up. CRE’s concentration on these kinds of NNN assets can pay off for investors in numerous potential ways. 

For an investment platform to succeed, it needs to serve clients well, build trust and put them at ease, especially when the buy-in is over $10,000. 

The CRE Income Fund platform delivers in terms of customer service, and it’s easy to see it is client-focused. Its Facebook page is informative and includes high ratings from clients and users. Clients can reach out to the site via telephone during business hours or email at any time. The Contact Us section is easy to find, and email inquiries are promptly responded to. 

The platform features an excellent FAQs section and glossary of terms where a prospective investor can access information about how the platform functions, its investment objectives and a glossary of investment-specific terms (NOI, NNN lease). The overall customer service effort is outstanding. 

The designers of the CRE platform place the requisite premium on security that you would expect from a financial services platform. Email address authentication is required, and you submit your photo ID for visual verification. These steps are required before you can begin investing, along with proving your status as an accredited investor. The security features are robust and multi-layered, including encrypted SSL certificates for the site itself. 

The CRE Income Fund is open to accredited, U.S.-based investors over the age of 18. The minimum investment is $10,000, which by accredited investment-only offering standards, is a relatively low buy-in. Management fees have just been lowered from 2% to 1%. 

Another big bonus is that the fund offers a secondary market where investors can liquidate their shares, subject to restrictions outlined in the investment prospectus and share agreement. This flexibility can be invaluable to passive income investors, many of whom may be reluctant to commit funds to a private real estate investment trust (REIT) or real estate crowdfunding offering with a long hold period.

In exchange for a $10,000 contribution, investors gain access to a fund that has offered a 10% annual dividend yield in addition to capital appreciation. In addition to being long-term, most NNN leases have rent increases phased in, and as the NOI increases, investors may reap the benefit of faster capital appreciation. Every investment carries some risk of loss, even when it’s in a commercial NNN asset, and past performance is not a guarantee of future success.

The user experience on the CRE Income Fund platform is top-notch. After sign-up, the user dashboard is intuitive, easy to use and appealing to the eye. Everything you would need to know about your account is readily accessible and not something you will have to look for. The icons for the user could not be better. 

The platform onboards all new accounts within 24 hours. It is affiliated with a broker-dealer, North Capital Securities, which requires verification of your ID and accreditation before you can begin investing. If you’ll be investing as a business entity, it must be properly registered with the secretary of state where it exists. Overall, it’s an excellent user experience.

CRE Income Fund vs. Competitors

The CRE Income Fund is not alone in terms of offering passive income-oriented real estate investments. Competing platforms include Crowdstreet, EquityMultiple and Streitwise. 

Two of these platforms (EquityMultiple and Crowdstreet) are exclusively available to accredited investors but have different buy-ins. Crowdstreet’s buy-in is $25,000, while EquityMultiple’s buy-in is $5,000. Streitwise is open to accredited and non-accredited investors. Take a look at the chart below to learn more about the different platforms and their individual pluses and minuses. 

The CRE Income Fund is a solid platform for accredited investors looking for passive income and asset appreciation. The fund’s well-vetted set of assets includes sectors that are forecasted to experience continued long-term demand. Most of its assets are properties with NNN leases. The functionality of the site itself and its customer service program are equally high. The $10,000 buy-in is not cheap, but it’s reasonable considering what investors are getting access to in return. This site would earn a 5-star rating with a mobile app and an option for non-accredited investors to participate. 

Frequently Asked Questions