Diversification Through Real Estate Investing

Access and diversification first

Direct participation programs provide access to institutional quality investments for smaller investors, while also offering portfolio diversification potential and a hedge against traditional asset volatility

Firm up your portfolio

To build a stronger future

Stax Capital offers Direct Participation Programs including Delaware State Trusts, Opportunistic & Value Add Funds, Real Estate Development and Qualified Opportunity Zone Funds to accredited investors.

Add diversification

Real estate is not directly correlated to traditional investments like stocks and bonds. Real estate has historically minimized exposure to negative market events.

Speculative investments

Real estate assets can produce positive cash flow that may under some circumstances, outstrip the cash flow benefits of traditional investments.

Illiquid investment

Direct Participation Programs can mitigate recessionary and other market based volatility. This potential benefit, may not occur with publicly traded real estate such as REIT's.

The Power of Diversification

Enhanced risk adjusted returns

Traditional Portfolio

Return

5.62%

Risk

10.24%

Sharpe

0.364%

Diversifying With Real Estate

Return

6.01%

Risk

9.57%

Sharpe

0.4337%

Bonds

Stocks

Commercial Real Estate

Sources: Morningstar®, NCREIF Property Index (NPI) (“Commercial Real Estate”) (provides returns for institutional grade commercial real estate held in a fiduciary environment in the U.S.), Bloomberg Barclays U.S. Aggregate Bond Index (“Bonds”), S&P 500 or Standard & Poor’s 500 Index (“Stocks”). Stocks and bonds are typically more liquid than direct investments in real estate. Tax efficiencies of investments in stocks and bonds may vary from those related to investments in real estate depending on the unique circumstances of the assets in the portfolio, portfolio management decisions, the tax status of the structure in which assets are held, and the tax status of the investor. Direct investments in real estate and bonds tend to have less volatility than investments in stocks due to general and industry-related market fluctuations, but the vehicle in which those assets are owned can also have a material impact upon that volatility. Expenses related to an investment in a professionally managed non-traded REIT that has a daily NAV may be higher than the expenses associated with an investment in a publicly traded stock or bond. The risks associated with an investment in real estate may materially differ from an investment in a publicly traded stock or bond and one should therefore review risk factors prior to making any such investment. Past performance is no guarantee of future results. The charts depicted herein are for illustrative purposes only and not indicative of any specific investment. An investment cannot be made directly in an index. There is no assurance that real estate investments will achieve capital appreciation or provide regular, stable distributions.

Income and Capital Appreciation

Commercial real estate has outperformed

Income Return

Total return

Sources: MorningStar®, NCREIF Property Index (NPI) (“Commercial Real Estate”) (provides returns for institutional grade real estate held in a fiduciary environment in the U.S.), Bloomberg Barclays U.S. Aggregate Bond Index (“Bonds”), S&P 500 or Standard & Poor’s 500 Index (“Stocks”). Data as of December 31, 1998 to December 31, 2018. Past performance is no guarantee of future results. The charts depicted herein are for illustrative purposes only and not indicative of any specific investment. An investment cannot be made directly in an index. Stocks and bonds are typically more liquid than direct investments in real estate. Tax efficiencies of investments in stocks and bonds may vary from those related to investments in real estate depending on the unique circumstances of the assets in the portfolio, portfolio management decisions, the tax status of the structure in which assets are held, and the tax status of the investor. Direct investments in real estate and bonds tend to have less volatility than investments in stocks due to general and industry-related market fluctuations, but the vehicle in which those assets are owned can also have a material impact upon that volatility. Expenses related to an investment in a professionally managed non-traded REIT that has a daily NAV may be higher than the expenses associated with an investment in a publicly traded stock or bond. The risks associated with an investment in real estate may materially differ from an investment in a publicly traded stock or bond and one should therefore review risk factors prior to making any such investment. Past performance is no guarantee of future results. The charts depicted herein are for illustrative purposes only and not indicative of any specific investment. There is no assurance that real estate investments will achieve capital appreciation or provide regular, stable distributions.

Growth in Net Operating Income Has historically Outpaced Inflation

10-year Average Annual Growth Rates (March 31, 2009 - March 31, 2019)

NOI (Rental Income)

CPI (Inflation)

Sources: National Council of Real Estate Investment Fiduciaries (NCREIF) and the U.S. Department of Labor, Bureau of Labor Statistics. Past performance is no guarantee of future results. The charts depicted herein are for illustrative purposes only and not indicative of any specific investment. An investment cannot be made directly in an index.

Every investment carries risk

Real estate is not immune

Although Stax conducts multiple levels of due diligence, investors must
rely on their own due diligence along with that of their own tax,
legal and financial advisors.

Illiquidity

Real estate investment is highly illiquid due to its typical long term nature and holding periods of 5 to 10 years.

Market risk

Real estate is subject to market risk, which includes employment factors, competing properties and location economic variables.

Property risk

Real estate can require significant capital for costs such as tenant improvements, leasing commissions and upgrades.

Financing

Properties using financing must service ongoing debt and if sufficient income is not generated, the property itself can be at risk of foreclosure.

Occupancy

Fluctuations in occupancy occur when tenants are gained and lost over time, which impacts cash flow positively and negatively over time.

We don't have a crystal ball

But we try to look into every corner

We've refined our approach over two decades including developing a proprietary
due diligence process designed to help mitigate risk in your investments.

Proprietary diligence

Stax has developed a thorough and comprehensive due diligence process that encompasses issuer and product due diligence, alongside industry and sector analysis.

Physical inspections

Stax will often tour properties before recommending an investment, incorporating real world intelligence into the due diligence process. We also enjoy hosting property tours for our clients.

Executive interviews

Stax interviews executive teams at their corporate headquarters to gain insight into their backgrounds, experience and track records, which could shift the needle during the due diligence process.

Third party reviews

Stax engages independent third parties for legal, structural and financial reviews, plus background checks on managers and issuers. We cross reference our work against other industry professionals.

Stress testing

Stax specialists undertake detailed fund analysis and financial modelling evaluation, interrogating inputs and assumptions used to build financial models.

Market analysis

Stax analyzes investment inputs and variables against third party data from analysts like REIS and Moody's to verify financial model assumptions.

Completed Investments

Passco Riverhouse DST

Little Rock, AR

NexPoint Aviation DST DST

Morrisville, NC

Passco Velo DST

Memphis, TN

GSA Birmingham Government DST

Birmingham, AL

Passco Cadence DST

Sugar Hill, GA

CF Arrabella Multifamily DST

Houston, TX

Let’s start the conversation

There are many things to learn and discover when we start a conversation.
Please feel free to call us or use the form below to learn more. A Stax Capital team member will be available to answer questions and provide guidance.

Phone: 844-427-1031

Address: PO BOX 7182, Rancho Santa Fe, CA 92067

Email: info@staxai.com

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