Frequently Asked Questions
These FAQs address the most common questions from retirement investors considering real estate for income and diversification.
1. Getting Started & Portfolio Allocation
How much of my retirement portfolio should I allocate to real estate?
While there’s no universal rule, many retirement-focused portfolios allocate 10–25% to real assets such as real estate, depending on income needs, net worth, and risk tolerance.
A commonly used framework:
10–15% for first-time real estate investors
15–20% for those comfortable with alternative assets
20–25% for investors seeking stronger income diversification
Real estate is typically positioned as a complement to stocks and bonds, not a replacement.
Won’t I lose flexibility if real estate is less liquid?
Real estate is less liquid — and that’s intentional.
Liquidity is usually managed outside real estate through:
Cash and short-term reserves
A portion of equities
Many retirees maintain 12–18 months of living expenses in liquid assets and keep 40–50% of their portfolio in stocks. Real estate then serves as strategic, long-term income, not an emergency fund.
Should I reduce stocks or bonds first when reallocating into real estate?
In many cases, investors reduce bond exposure first, since real estate income can offer better inflation protection than fixed-income securities.
However:
If a portfolio is heavily stock-weighted (70%+), rebalancing from equities may also make sense.
The right choice depends on overall allocation and income needs.
The objective is better balance and income stability, not market timing.
What if I’m already 10+ years into retirement?
It’s not too late.
Many retirees add real estate income well into retirement. The key is ensuring:
Adequate liquidity elsewhere
No short-term reliance on invested capital
A measured allocation size
Age matters less than planning and discipline.
2. Investment Structure & How It Works
What am I actually buying when I invest through PropTXchange?
You are investing in a fractional economic interest in a specific, income-generating property, typically through a dedicated legal entity.
This means:
You participate in income and potential appreciation
You are not responsible for property management
You are not purchasing shares of PropTXchange itself
All ownership rights, income mechanics, and exit terms are outlined before you invest.
What’s the minimum investment amount?
The minimum investment per property is $50,000.
This helps ensure:
Serious, long-term participation
Access to professionally managed properties
Meaningful income impact
Many investors diversify by allocating across multiple properties over time.
How long does it take to get started?
Most investors complete registration, verification, and funding within 1–2 business days, depending on documentation and banking timelines.
3. Capital Protection, Income & Risk
Where does my money go, and how is it protected?
Investor funds are routed through independent third-party escrow accounts, not operating accounts.
Funds are released only after:
Documentation is finalized
Investment conditions are met
This mirrors standard practice in professionally structured real estate transactions.
How do I receive income distributions?
Income is generated from property operations such as rent. After expenses, net income is distributed periodically, based on your ownership share.
Distribution timing and mechanics are clearly outlined for each investment.
Is my investment guaranteed?
No. Real estate investing involves risk and is not guaranteed or insured.
Risks may include:
Changes in property value
Variability in rental income
Market and operational factors
Limited liquidity
Professional management and structured transactions help manage risk, but they cannot eliminate it.
4. Liquidity, Exit & Taxes
What if I need access to my money later?
Real estate is generally a medium- to long-term investment.
Liquidity typically comes from:
Property sale events
Other exit options described in the investment documents
This is why maintaining sufficient liquid assets outside real estate is essential.
How are taxes handled?
Income is generally treated as rental income, and depending on structure, investors may benefit from depreciation and pass-through deductions.
Annual tax documents are provided. Individual tax situations vary, so consulting a tax professional is recommended.
What happens to my investment if something happens to me?
Your investment is part of your estate and can be transferred to beneficiaries through your will or trust. Administrative support is provided to facilitate this process.
5. About PropTXchange
What makes PropTXchange different?
PropTXchange was built by the team behind Alpha1 Partners, with experience guiding over 7,000 clients through retirement planning.
The platform focuses on:
Verified, income-generating U.S. properties
Professional structuring and escrow safeguards
Transparency and disciplined execution
A retirement-first investor mindset