Real Estate vs. Alternative Investments

For "marketing" purposes, what would be a good comparative set of alternative investments to real estate (i.e. bonds, T-bills, etc)? And of that set, where could I easily find out what those alt investments would yield today, as to create a table showing those yields vs. what a potential CRE deal would yield?
In Buying Property - Asked by Eric G. - Jul 10, 2009
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Answer(s)

Juan V.
Broker/Agent
East Chicago, IN

Actually, Real Estate IS considered an "Alternative Investment". Alternative Investments encompass "anything" other than traditional investments such as Securities (Registered) to include: Stocks, Bonds, including T-Bills/Notes/Bonds, Mutual Funds, Money Market, and UTF's. However, a good comparison would be a REIT Fund, A Real Estate Fund, or even a comparison with a corporate bond.
The question should really be: What type of CRE? Office Building vs Industrial or TIC's within those assets.
As a past advisor, if you are trying to make a case for CRE vs Securities then show 20-30-100 year performance and concentrate on Standard Deviation and ALPHA measure. Real Estate has tipically had a negative correlation with markets.

Jul 10, 2009
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Eric G.
Corporate Investor
Beverly Hills, CA

The purpose of needing the information was so that when I begin syndicating equity for smaller deals, I can tell a potential investor "Hey, this real estate deal projects an average cash yield of 8% per annum over a five year hold, with a leveraged IRR of 13%, if you invested in (fill in the blank), you would only be earning (fill in the blank %) on your money".

Jul 10, 2009
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Paul S.
Broker/Agent
Glendora, CA

You should be able to find on the Internet what the average increase is on real estate for your state (California it has averaged 8% over the past 40 years+). You should be able to find out the same information about securities, stocks, bonds etc.

Jul 11, 2009
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Thomas S.
Broker/Agent
Chino Hills, CA

I realize you said alternative investments, but I would gauge your investments VS. REITS.....

Oct 12, 2009
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