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4 Reasons the KASA Real Estate Investment Fund Will Outperform Stocks

Real estate investing is a smart, secure way to make money for retirement and diversify your financial portfolio, while also gaining a hedge against inflation and protection from stock market volatility.

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Still, finding great investment properties can feel overwhelming, and many investors just don’t have time to manage real estate investments, even if they do find a worthwhile property to buy…. Which is exactly where real estate funds like the KASA Investment Fund enters the picture. Offering all the benefits (and many more) with none of the headaches or risks that typically come with owning and managing individual properties, this innovative asset class deserves more than just a passing glance, even if you’ve already allocated a healthy portion of your portfolio to real estate investments.

Here are four reasons the KASA real estate investment fund will outperform the stock market and offers a competitive advantage compared to all other asset classes:


Cash Flow - Rental IncomeCash Flow

Simply put, “Cash Flow” refers to the money left over after collecting funds from rental income or hotel bookings and all of the investment property’s expenses already paid. When you buy a property that collects more rent / income each month than the expenses, it has a positive cash flow. Offered by the KASA Hotel Collection, the KASA Investment Fund is a 100% secure way to invest in the robust travel and tourism real estate market, providing 12-15% annual ROI through a well-diversified portfolio of luxury beachfront hotels that are located throughout the Caribbean and the Americas.

“Wise investors don’t bet on appreciation,” wrote Forbes. “They purchase properties on a sound judgement that the property will generate more income than it costs to own. For [investors who] ‘cash flow positively,’ they don’t care what the market does. If prices drop, they are safe. If prices rise, they are safe.”


AppreciationAppreciation

Which brings us to the topic of appreciation. Defined as “the rising prices of homes and investment properties over time,” appreciation is how the majority of real estate wealth is built, because it often results in a large windfall of money. In addition, although prices typically fluctuate somewhat over time, in the long-term real estate values have always gone up (always!), and there is no reason to believe that will change at any point, since land is one of the only things we can’t easily make more of.



Forced EquityForced Equity

Generally speaking, “Forced Equity” is a term used to describe the wealth that’s created when an investor develops a property in an effort to increase its value. When you become a Shareholder of the KASA Investment Fund, your principal investment is always secured against the real estate itself, along with other assets of the company, which buys and pays for all land and construction up front in cash, thereby incurring zero debt during development. And since the Fund only invests in luxury beachfront properties that are part of the KASA Hotel Collection and Small Luxury Hotels of the World, all of the properties are immediately worth up to five times more than the original value of the real estate immediately after development is complete.


Inflation - Inflation

Last but definitely not least, inflation is another major wealth-building tool for real estate investors that helps increase the value of certain assets over time. As the value of our money decreases year after year, the prices of goods and services increases. Although this concept is often taken for granted, it’s also an incredibly powerful way to build wealth… Provided you understand how to use it! The key lies in the fact that, while most of a property’s expenses stay relatively fixed over time (routine maintenance, taxes, utilities, etc.), the cost of rent and the value of the property will naturally increase over time thanks to inflation. This fact ultimately has a cumulative effect for investors that will produce impressive growth over time.


Would you like to know more about this income-producing real estate investment? Click here to get more details about the KASA Investment Fund