Specializing in Tax Deferred real estate investments for 1031 exchanges, Opportunity Zone Capital Gains and Private Placement investment funds with taxable dollars.

Mercer Financial Group helps you invest in securitized, institutional real estate offerings with confidence and ease.  Working in conjunction with institutions that structure Delaware Statutory Trust (DST) and Tenant in Common (TIC) offerings for investors like you who utilize 1031 and 1033 exchanges andOpportunity Zone Investmentsfor capital gains tax deferral without being actively involved in the property’s oversight and management.

Below is a brief and educational explanation of the types of investments Mercer Financial Group Limited offer and the risks they can entail.  If at any time you have questions about our services and their risks, we invite you to call and schedule a consultation.

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1031 Risk Disclosure:

  • There is no guarantee that any strategy will be successful or achieve investment objectives;
  • Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
  • Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
  • Potential for foreclosure – All financed real estate investments have potential for foreclosure;
  • Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
  • Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
  • Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

Opportunity Zone Disclosures

  • Investing in opportunity zones is speculative. Opportunity zones are newly formed entities with no operating history. There is no assurance of investment return, property appreciation, or profits. The ability to resell the fund’s underlying investment properties or businesses is not guaranteed. Investing in opportunity zone funds may involve a higher level of risk than investing in other established real estate offerings.
  • Long-term investment. Opportunity zone funds have illiquid underlying investments that may not be easy to sell and the return of capital and realization of gains, if any, from an investment will generally occur only upon the partial or complete disposition or refinancing of such investments.
  • Limited secondary market for redemption. Although secondary markets may provide a liquidity option in limited circumstances, the amount you will receive typically is discounted to current valuations.
  • Difficult valuation assessment. The portfolio holdings in opportunity zone funds may be difficult to value because financial markets or exchanges do not usually quote or trade the holdings. As such, market prices for most of a fund’s holdings will not be readily available.
  • Capital call default consequences. Meeting capital calls to provide managers with the pledged capital is a contractual obligation of each investor. Failure to meet this requirement in a timely manner could elicit significant adverse consequences, including, without limitation, the forfeiture of your interest in the fund.
  • Leverage. Opportunity zone funds may use leverage in connection with certain investments or participate in investments with highly leveraged capital structures. Leverage involves a high degree of financial risk and may increase the exposure of such investments to factors such as rising interest rates, downturns in the economy or deterioration in the condition of the assets underlying such investments.
  • Unregistered investment. As with other unregistered investments, the regulatory protections of the Investment Company Act of 1940 are not available with unregistered securities.
  • Regulation. It is possible, due to tax, regulatory, or investment decisions, that a fund, or its investors, are unable realize any tax benefits. You should evaluate the merits of the underlying investment and not solely invest in an opportunity zone fund for any potential tax advantage.
Mercer 1031

Historically low correlation real estate related funds

As the name suggests, an historically low correlation asset class historically less in tandem with the returns of bonds, equities or Public REIT’s thus offering the potential for some stability in a portfolio. Thus when building an equity portfolio, historically low correlation assets should be a prime consideration, but the question remains, which historically low correlation equity assets should you consider for your portfolio while still striving to mitigate the risk of lowering the overall performance?

Private real estate has a historically low or negative correlation with stocks, bonds and public real estate investment trusts (REITs), and has the potential to help smooth out fluctuations in returns with a traditional portfolio of stocks and bonds.

There are several equity asset classes that Mercer Financial Group Limited can utilize to seek to take advantage of diversification and historically low correlation. You may already have a few of these assets in your portfolio now. Either way, Mercer Financial Group Limited is here to help get you the historically low correlation asset(s) that may fit your needs.

  • Private Placement “Regulation”-D where issuers deal directly with the investors as they are exempt from the registration of the securities act of 1933.
  • Experience delivering unique insight into Commercial Real Estate investment funds
  • Investments Funds That:
    • Traditionally offer a low correlation to equities and bonds
  • Benefits of real estate investments may include
    • Stable Income
    • Inflation hedge
    • Tax benefits
    • Appreciation
    • Diversification
  • Industry leading partners providing access to institutional quality alternative investments.

Not an offer to buy, nor a solicitation to sell securities. All investing involves risk. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided on this site has been prepared from sources believed to be reliable, but is not guaranteed by Mercer Financial Group or Emerson Equity LLC and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only.

Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.