Real estate funds commonly run for several years plus extensions. Capital may be called over the first years and returned unevenly over the life of the fund.
Think about
- Where will you be in 5, 7 and 10 years (retirement, children in college, a move)?
- Would you be comfortable if distributions arrived later than you hoped?
- Are you investing money you truly will not need in that window?
A fund’s stated term is not a promise: sales can be delayed by markets, financing or the GP’s judgment. See the Liquidity, Transfers and Lockups article for how extensions work.
Related
Your journey
More on this stage: Deep Dive: How 506(c) Accreditation Verification Works · Deep Dive: Calculating Net Worth Without Your Home · Deep Dive: Talking It Through as a Household
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