Create Your Hedge Fund

Hedge funds are a great thing for those wealthy individuals that can afford to invest a small amount of ‘risk’ capital to boost their returns. Think about it, you can invest about 10% of your wealth and generate returns that can boost your overall portfolio from a paltry 6-8% per year to 12, 15 or 20% if you are in the right fund!

Hey, if you loose money theirs good news as well. The loss is active and can count against any taxes owed on income from other sources. It’s almost a win, win right?

So how can we investors create a windfall Hedge Fund like return for ourselves? It’s easy, invest in small commercial properties. Small commercial property is less risky than hedge fund investing, but it gives us many of the same market and tax advantages.

Think about it, with commercial property you get positive income streams, depreciation deductions on your taxes and, if you’ve invested properly, you get to enjoy the benefits of capital appreciation tied to the properties value growth. Talk about a hedge against downturns, inflation and possible stock market losses.

By investing in just a few small commercial properties you can create additional cash flows and tax deductions at the same time. Investing in a small office building, an 8-12 unit apartment building or a small retail strip center with 4-8 retails spaces can be a great way to diversify income and support your residential real estate portfolio.

Making a few small commercial investment today could be like creating your own mini-hedge fund for your small business.

Michael Gross is the President of Dividend America Mortgage and has been in real estate for over 20 years. He has been a builder, a Realtor, an appraiser, and currently he is a lender and an active real estate investor. He uses all of his experience and knowledge to show individuals how to properly use a mortgage as a tool to help create greater wealth through real estate investing. For more information on residential and small commercial loans please contact Mr. Gross on his direct line at 770-350-7373 or via email at mgross@dividendamerica.com