Before You Invest in a Real Estate Fund: Returns, Risk, Taxes, and How the Money Works | The AAA Storage Podcast #38

In this episode Paul Bennett answers the fifteen most common questions investors have about Growth Fund 2. Paul delivers straightforward insights on topics ranging from ground-up development versus existing acquisitions, preferred returns and cash flow timing, to the firm’s own investment commitment and risk management strategies. Listeners will gain an inside look at how the fund operates, what sets AAA Storage apart, and practical answers for anyone considering self-storage or industrial investments. If you want a transparent, expert perspective on how Growth Fund 2 is structured and what you can expect as an investor, this episode is for you.Take a look at some of our previous episodes to learn more:• Understanding Cap Rates, Yield on Cost, Development Spread, and IRR• How We Underwrite a Storage Deal — Start to Finish• What Family Offices Want in an Investment — And How We Deliver• Why Invest in Ground-Up Development• Behind the FoF Curtain: Fees, Alignment, and When It’s Worth It• 2026 Market OutlookReady to talk about your investment strategy? Reach out at aaastorageinvestments.com New episodes every two weeks. Subscribe on Apple Podcasts, Spotify, or wherever you listen to podcasts, and send this to an investor in your network who needs to hear it. Chapters(00:00) Introduction and Most-Asked Investor Questions(00:01) How Growth Fund 2 Generates Returns(02:14) Ground-Up Development Versus Acquiring Existing Assets(05:26) Growth-Oriented Strategy and Cash Flow Timing(09:00) Understanding the Preferred Return Structure(13:00) Project Underwriting and Approval Process(15:42) What Sophisticated Investors Seek(18:06) Sponsor Commitment and “Skin in the Game”(19:51) Investor Commitments and Capital Allocation(21:32) Fund of Funds Structure Explained(24:28) Managing Construction Cost Increases(27:34) Tax Benefits and Bonus Depreciation(30:14) Property-Level Debt and Leverage(32:58) Planning for Project Variations and Contingencies(36:29) Closing Summary and Invitation to ConnectFollow and Connect with Us• LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/• Instagram: https://www.instagram.com/aaastorageinvestments/• X: https://x.com/investments_aaa• Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/Download our free guides to take your investing to the next level:10 Due Diligence Questions to Vet Any Real Estate Sponsor: https://www.aaastorageinvestments.com/info/10-due-diligence-questions-to-vet-any-real-estate-sponsorFirst-Time Real Estate Syndication Investor Checklist: https://www.aaastorageinvestments.com/info/first-time-real-estate-syndication-investor-checklist