Many investors are looking for alternative investments away from the volatile equity and publicly traded REIT markets. More specifically, they are looking for institutional-quality office buildings with predictable cash flow and certainty to when the cash flow will be distributed. At the top of their list, these investors want to be invested with an experienced, leading sponsor and manager of these office buildings.
Individual investors, who are searching for those investment metrics described above, do not have to pay commissions to make this type of investment. Many investors don’t realize that they are paying commissions to invest into institutional quality CRE with a leading sponsor.
Investors can have the transparency into the assets and markets they are invested in if they just know where to look.
KBS is one of the leaders in the CRE industry and has created direct access for investors to invest into institutional quality commercial office buildings. One of the keys for investors is transparency into the REIT so that they can review the buildings and perform all the due diligence they want on the portfolio. This investment process was typically reserved for large institutional investors, but KBS has now opened the door to individual investors to participate in the same REIT/Fund evaluation and investment process as its institutional investors, without having to pay commissions and loads to invest.
How does KBS offer direct investment access to individual investors?
The majority of REIT and Fund investments are offered through brokers and advisors. Individual investors may have relied on their advisors to suggest real estate investments and products for their portfolio. There has typically been a commission, fee, or load charged to the investor by the broker. Sometimes these fees can be high.
Some institutional real estate sponsors are selling their REITs and investments through brokers and wire houses. The brokers may charge their clients a commission and/or load for these investments, which may reduce the potential yield and return to the end investor.
KBS is offering its REITs and funds directly to investors, and eliminating the commission and loads charged to investors.
Investors may benefit from this model
The individual DIY (do-it-yourself) investor: The DIY investor can gather research on various products and perform all the investment due diligence themselves. There are sponsors who have their own portal to make investments directly. KBS is one of the institutional real estate sponsors who offers an online direct access investment fund via KBSDirect.com, where investors can research the fund and then invest without having to pay a commission or sales load.
The era of investors being able to invest into institutional quality real estate with an institutional quality sponsor like KBS, where investors do not pay commissions or sales loads, is here.
Investing in KBS Growth & Income REIT includes substantial risks. These risks include, but are not limited to: the possibility of losing your entire investment; no guarantees regarding performance; upon sale or distribution of assets you may receive less than your initial investment; fluctuation of the value of the assets owned by KBS Growth & Income REIT; lack of a public market for shares of KBS Growth & Income REIT; limited liquidity; limited transferability; reliance on KBS Capital Advisors LLC, the REIT’s advisor, to select, manage and dispose of assets; and various economic factors that may include changes in interest rates, laws, operating expenses, insurance costs and tenant turnover. Shares of KBS Growth & Income REIT are not suitable for all investors. Investors should read and consider the PPM carefully before investing.
KBS Direct makes no representations as to the appropriateness of an investment in KBS Growth & Income Real Estate Investment Trust for ERISA plan fiduciaries and IRA owners and no investment advice is being provided. ERISA plan fiduciaries and IRA owners should consult with their own advisors and counsel before making an investment in the REIT’s shares. This is not an offer to sell securities. Offers to sell, or the solicitations of offers to buy, any security can only be made through a private placement memorandum and other official offering documents that contain important information about risks, fees and expenses.
Securities offered through North Capital Private Securities (NCPS). Member FINRA/SIPC.