Finding Capital to Invest in a Fund

Unlocking Capital for Your Next Real Estate Investment

When it comes to building wealth and diversifying your portfolio, real estate has long been a tried-and-true strategy. But for many investors, the biggest hurdle isn’t understanding the benefits of real estate investing—it’s figuring out how to fund that first or next investment. The good news? There are multiple ways to unlock capital, often from resources you already have, to get started.

Let’s dive into some of the most effective strategies that our investors at Boost Capital Group frequently use to fund their real estate opportunities:

1. Self-Directed Retirement Accounts (Solo 401K/IRA)

Many people are unaware that their retirement savings can be a powerful tool for real estate investing. With a Self-Directed IRA or Solo 401(k), you can:

• Invest Tax-Advantaged: These accounts allow you to invest in alternative assets like real estate while enjoying the tax benefits of traditional retirement accounts.

• Diversify Beyond Stocks: By leveraging these accounts, you can reduce your dependence on the stock market and invest in stable, cash-flowing assets.

For example, imagine rolling over funds from your traditional IRA into a Self-Directed IRA. You could use those funds to invest in a real estate syndication or fund, potentially growing your wealth tax-deferred (or tax-free, in the case of a Roth account).

Pro Tip: Consult with a financial advisor to ensure compliance with IRS regulations.

2. Home Equity

If you own a home, you might be sitting on untapped potential. Home equity can be a powerful resource for funding real estate investments through strategies like:

• Cash-Out Refinancing: Refinance your mortgage and take out cash to invest in income-producing assets.

• Home Equity Line of Credit (HELOC): Access your home’s equity as a revolving line of credit to fund investments.

These options allow you to put dormant equity to work without selling your property. For example, using a HELOC to fund a multifamily syndication investment could generate cash flow and appreciation, effectively turning your home’s equity into an income-producing asset.

3. Stock Market Gains

If you’ve been fortunate enough to see substantial gains in your stock portfolio, now might be an opportune time to diversify. Real estate offers:

• Stability: Unlike the stock market, real estate is less volatile and provides consistent cash flow.

• Tangible Value: Real estate is a physical asset, offering both intrinsic value and potential appreciation.

Selling appreciated stocks to reinvest in real estate can help protect your wealth from market corrections while providing passive income. Plus, if you’re strategic about timing, you can take advantage of lower capital gains tax rates.

Pro Tip: Work with a tax professional to optimize the timing and tax implications of selling appreciated assets.

4. Bonus Income

Whether you’ve received a year-end bonus or performance-based incentives, these windfalls can serve as seed capital for real estate investing. Instead of spending that bonus on liabilities or fleeting luxuries, consider using it to:

• Fund Your First Investment: Start small with a syndication or fund that aligns with your financial goals.

• Reinvest in Your Wealth: Grow your passive income streams by reinvesting bonus income annually.

  
  

For example, a $25,000 bonus could be used to participate in a real estate syndication, which could double your capital over five years, all while providing cash flow along the way.

Why Real Estate?

Real estate stands out as an investment because it offers a combination of benefits that few other asset classes can match, including:

• Cash Flow: Regular income from rental properties.

• Appreciation: Long-term growth in property value.

• Tax Benefits: Deductions like depreciation can offset income.

• Leverage: Use financing to amplify returns.

  
  

By diversifying your portfolio with real estate, you can achieve greater financial stability and resilience, especially in uncertain economic times.

How Boost Capital Group Can Help

At Boost Capital Group, we specialize in helping busy professionals and entrepreneurs leverage their resources to invest in high-quality, passive real estate opportunities. Our customizable fund model allows you to tailor your investments to your financial goals, making your money work harder for you.

If you’ve been thinking about investing in real estate but felt unsure about where to start, now is the time to act. By unlocking capital from the resources you already have, you can take control of your financial future and start building wealth passively.