Income-Generating Funds:

Returns in income-generating real estate funds primarily come from regular income generated by the properties, such as rental payments. These funds distribute income to investors through dividends on a periodic basis, which can vary depending on the fund's terms—common frequencies include monthly or quarterly. Additionally, profits are realized from the capital appreciation when the fund’s assets are sold off at the end of the fund duration.

Development Funds:

Returns in development funds are based solely on capital appreciation and profits from the sale of developed properties. These funds do not generate regular income during the development phase; instead, investors earn returns when the properties are completed and sold, reflecting the capital gains achieved through the development process.

Please refer to a fund’s terms to understand your expected return structure.