Do your Due Diligence: Tips for Investing with Confidence

Investing in real estate funds can be a lucrative way to increase your financial portfolio, but it is important to do your due diligence and research before committing to an investment fund. In this blog post, we will discuss the importance of researching before investing, offer tips to help you make a smart decision, and share how ILS Capital answers these important questions. 

Do Your Due Diligence: What to Look For

Investing in an investment fund can be an exciting opportunity to grow your wealth, but it’s essential to approach it thoughtfully and do your due diligence. This research will help you gain a clear understanding of the fund’s potential and minimize risks. By taking the time to research, you can evaluate factors such as the fund’s experience, strategy, track record, and fees. It also allows you to gauge client feedback and investigate the fund’s legal structure and communication. 

What Experience Does the Fund Offer?

When choosing an investment fund, it’s crucial to look for experience. An experienced fund manager will have a track record of successfully navigating market fluctuations and delivering consistent returns to investors. Look for a fund manager who has been in the industry for several years and has a proven ability to make sound investment decisions. Experience brings knowledge, insights, and the ability to adapt to changing market conditions. By choosing a fund with an experienced team, you can have confidence in their ability to handle your investments and potentially generate attractive returns for your portfolio.

What experience does ILS Capital offer? We have been managing investor capital since 2014, helping our clients earn excellent returns even during COVID shutdowns and current market fluctuations. With over 100MM invested in our funds and hundreds of happy investors, We understand real estate investing through all market cycles.

Understanding the Investment Fund’s Strategy and Objectives

This information provides insight into how the fund operates and the goals it aims to achieve. Look for funds with clear and well-defined strategies that align with your investment objectives. Consider the fund’s target market, asset allocation, risk management approach, and investment philosophy. Understanding these aspects will help you determine if the fund’s strategy and objectives are in line with your own investment preferences and risk tolerance. It’s important to choose a fund that fits your investment goals to maximize your chances of success.

Our strategy at ILS Capital is to invest in high-quality notes from our sister company, Investor Loan Source, and real estate assets that we have identified through our experience and rigorous research methods. We offer multiple investment options based on the type of real estate asset you’re interested in. 

Evaluating the Fund Manager’s Track Record

This provides valuable insights into their past performance and ability to deliver returns. Look for fund managers who have consistently achieved positive results over a sustained period. Consider factors such as the fund’s average annual returns, risk-adjusted performance, and how they have fared during different market cycles. A fund manager with a strong track record indicates their ability to navigate market fluctuations and make informed investment decisions. By evaluating the track record, you can gain confidence in the manager’s abilities and make a more informed decision about investing in the fund.

ILS Capital funds consistently meet target returns and remain consistent despite market fluctuations.

What Are Their Clients Saying?

It’s essential to gather insights from clients who have already invested. Their experiences can provide valuable information and help you make an informed decision. Take the time to research client feedback and reviews about the fund you are considering. Look for patterns in their experiences, both positive and negative, and consider how those align with your own investment goals and risk tolerance. Clients’ opinions can give you a deeper understanding of the fund’s performance, customer service, and overall satisfaction. By listening to what clients are saying, you can gain a well-rounded perspective and invest with confidence.

What are our clients saying? Let’s hear directly from them:

“As an investor in alternative investments, I look for sponsors with solid reputations and excellent and proven business models. After doing my due diligence, I felt extremely comfortable with ILS and its offerings. I invested a significant amount of capital around two years ago and am highly pleased with the returns, communication, and professionalism the ILS team offers. I look forward to a long-lasting, mutually beneficial relationship with ILS.”

– Dr. Tim R.

“My wife and I are so pleased to be able to invest with ILS Capital. We were fortunate to meet and share a meal with Tom at several Freedom Founders events. His real estate background and the fund’s flexibility gave us the confidence to trust him with our investment, and we have never regretted it. Consistent returns above target each year since investing, timely communication, and excellent responses. We highly recommend them to anyone interested in passive real estate investing.”

-Randy and Jody T.

What Fees Are They Charging?

These fees can vary widely among different funds and can have a significant impact on your overall returns. Take the time to understand the fee structure of the fund you are considering. Look for management fees, performance fees, and administrative fees. Consider how these costs will affect your investment returns and whether they are justified based on the fund’s performance and services provided. 

ILS Capital has a straightforward fee structure. We do not charge any management fees by default. Instead, we have a Performance Bonus component as a minor percentage of profits. This fee structure is designed to assure our investors that we will only make money after they do. 

Investigating the Fund’s Legal Structure and Communication

Start by reviewing the fund’s legal documentation, such as the prospectus and offering memorandum, to understand its legal structure, regulations, and obligations. This will help ensure that the fund operates in compliance with industry standards and regulations. Additionally, evaluate how the fund communicates with its investors. Look for transparent and regular communication channels, such as newsletters, quarterly reports, and investor meetings. A fund with clear and effective communication practices demonstrates its commitment to keeping investors informed and engaged. By investigating the fund’s legal structure and communication, you can gain confidence in its transparency and commitment to investor relations.

At ILS Capital, we are a family-owned business, and we treat our clients as if they are a part of our extended family. We believe in maintaining regular communication with our clients and therefore provide quarterly reports to update them about the progress of our investment offerings and the new opportunities we have to offer. We take pride in our easy-to-work-with culture, which includes simple processes and friendly associates who genuinely care about our clients. Give us a call at (979) 541-1280 or send an email to [email protected] to learn more. 

Final Considerations

As an investor, it’s crucial to consider a few final factors before investing in an investment fund. First, reassess your risk tolerance and investment goals to ensure they align with the fund’s objectives. Additionally, take a closer look at the fund’s historical performance during various market cycles and consider any potential risks or limitations. Consider whether the fund’s investment strategy is compatible with your long-term investment plan and evaluate how well it diversifies your portfolio. Lastly, analyze the fund’s liquidity and redemption policies to understand your ability to access your investment when needed. By carefully considering these final factors, you can make a well-informed decision and invest confidently in an investment fund.

Ready to invest? Take a look at our funds.

Disclaimer: This website does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by any entity contained within this site or any other third party regardless of whether such security, product or service is referenced within. Furthermore, nothing in this website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. We do not represent that the information, products, or services discussed within this website are suitable for any particular investor. Before investing, a prospective investor must read the applicable Fund’s Private Placement Memorandum (PPM) and seek advice from their financial, tax and legal professionals. An investment in the Funds or in notes requires verification of the prospective investor’s status as an accredited investor pursuant to Rule 506(c) promulgated under the Securities Act. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your business advisor, attorney, or tax and accounting advisor regarding your specific business, legal or tax situation. ILS Capital® is a registered service mark of ILS Capital LLC

© Copyright 2024. Investor Loan Source. All Rights Reserved.