How do real estate funds work?
From day one of our inception as a firm, BG Wealth Group has studied, analyzed, and identified ways to optimize our real estate portfolio for accelerated growth. This research has now manifested into the BG Wealth Group Real Estate Growth Fund, among other exciting products upcoming in 2023.
The fund is based on income from a carefully curated mixture of properties located in rural areas in the United States and Canada. Each of them has been selected for its potential for growth and includes a mix of residential, commercial, and vacation rentals.
Investors within our network have the opportunity to grow with us, and so we want to explain a bit more about the structure of funds such as these.
Strong, proven infrastructure and foundation
Just like a house with “good bones,” our real estate fund has been built on solid ground.
Our strategy of selecting undervalued properties that we renovate has resulted in substantial increases in the value of our buildings as well as attractive cash distributions for our investors.
Year after year, our portfolio has been yielding a great ROI despite a recession.
Minimize risk to your portfolio by diversifying
Because real estate generally increases in value, it can protect your wealth from risks like recessions and inflation. Diversifying your portfolio decreases your risk of losing your money or the risk of your nest egg losing value due to the natural fluctuations and volatility of the market.
U.S. investors receive a 30% additional gain via currency exchange
Just as the exchange rate between countries can affect your spending power when you’re visiting another country, it can also make a significant difference when you are investing short-term or long-term.
Because the exchange rate between Canada and the U.S. favors the United States Dollar, US investors gain 30% more shares via the currency exchange.
Operating in stable climates
BG Wealth Group is completely focused on stable and predictable growth through our real estate strategy of buying undervalued properties to renovate. While we got our start buying properties in Detroit, we have consistently purchased property in Canada. Our returns have shown us that doing that was a great decision.
In so many ways, Canada is the ideal place to invest because it provides criticalpolitical and economic stability that fosters growth. We’ve capitalized on this robust and secure foundation to build a portfolio that we are proud to share with our clients.
This stable foundation has also made it possible for us to embark on an expansion of business in the United States.
Our tax-favorable structure benefits you, the investor
The fund itself is not a taxable entity.Taxes are only payable on the investor level, not on the fund level, and you will receive a tax form that you will use when filing your taxes.
While real estate investments are one of the best ways to get tax deductions, as a passive real estate investor, those deductions may not be as dramatic as they would be if you were taking a more hands-on approach. But you save time and effort in being a passive real estate investor because we are taking care of the day-to-day management of the properties, and you share in the profits.
US Tax Treaty means dividends flow directly to you
The United States has tax treaties with Canada and other foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate or are exempt from U.S. taxes on certain items of income they receive from sources within the United States. The BG Real EstateGrowth Fund has a Limited Partnership (LP) structure that prevents double taxation. The LP is a flow-through entity for tax purposes, and therefore it does not have to pay taxes on its returns. The profits are distributed among the partners, who then include the income they receive in their personal tax returns. This is in contrast to a corporate investment entity.
A proven formula for the future
The BG Real Estate Growth Fund is always growing, expanding, and improving. We continually look for opportunities to secure safe and reliable profits for our investors.
To further empower its value investing strategy, BGWG will be undertaking development projects across its current and newly-acquired real estate properties with development and new construction as key points of its ROI expansion strategy in 2023-2024.
Full-service wealth management
BG Wealth Group provides investors with the rewards of real estate investing and is well-positioned to provide an overall wealth-management strategy, encompassing our real estate investment work and applying our value-investing formula to our client’s portfolios.
Call us today for more information on the BG Real Estate Growth Fund and to get some insights on how to maximize your portfolio. Click here to book a one-on-one wealth building consultation.
