Private debt funds are portfolios of loans typically made to small to mid-size companies, or to fund real estate acquisitions.

Real Estate Funds are typically larger than Delaware Statutory Trusts, but smaller than REITs. They often seek to raise $100 million or more in capital, which is then used to purchase income-producing real estate. Many funds use leverage to increase their purchasing ability and projected returns.

Due to their manageable size, real estate funds are able to focus on particular asset classes or regions of the country. Some funds will also focus on purchasing real estate from certain institutional sellers, allowing them access to discounts or benefits not normally available to the smaller investor.


Like DST offerings, real estate funds typically have a projected period of holding the property (i.e., 5-7 years), though the date of sale depends upon factors related to the specific properties, as well as to the overall market which cannot be predicted with certainty.


Investments in real estate funds are not considered an interest in real estate and are not eligible for 1031 exchange purposes.

Finally, the real estate fund offerings through Cornerstone are private placement investments accompanied by a private placement memorandum, but there are significant elements of risk that should be evaluated by the investor before purchase. Also, as there is no established secondary market for these interests, they should be considered illiquid investments.

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The content is developed from sources believed to be providing accurate information.  The information in this material is not intended as tax or legal advice.  Please consult legal or tax professionals for specific information regarding your individual situation.


This is neither an offer to sell nor solicitation of an offer to buy any securities. Offering facts and terms are controlled by a sponsor’s final Private Placement Memorandum (or prospectus). All investments and tax strategies have risks, including the possible loss of principal in many cases. Always review the offering document for a more thorough discussion of risks, expenses, and limitations. Certain investments discussed on this site are illiquid  and  generally cannot be sold readily on the open market. If you need to sell an asset to raise money quickly, you may not be able to do so.  Other investments are only available to accredited investors; the Security and Exchange Commission defines an accredited investor as an individual with either $1 million in net worth (all assets, excluding primary residence, less all liabilities) or net income for the last two years of $200,000 or greater ($300,000 if married) with a reasonable expectation of such earnings in the current year.

Past performance and/or forward statements are never an assurance of future results. Advisory Group Equity Services, ltd., its affiliated companies, and its representatives do not give tax, legal or accounting advice; nothing herein should be construed as such.

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