If you raise 5% and lose a month you will have a net loss.

It seems I am lossing money.:( Is that right? 

I do this at least quarterly for some of my clients and they like being able to see the profit and loss reports. 

We're starting to see the fallout from this - borrowers cant exit deals without taking a loss but are refusing to accept this.SC seems to be doing OK at the moment, but Louisiana is seeing price declines.

For example I hold the core of my real estate holdings without debt (because I'm a conservative investor and I'm more concerned about preventing a loss of money than I am with attempting to maximize potential return).

When you pay cash for a $400,000 home and rent it out, your rate of return will likely be less than 6%.You could invest in stocks and earn 7% or better.You could put the money in a high-interest savings account and earn up to 5%.I don't understand why anyone would pay cash for real estate, erasing many benefits that increase the rate of return, while exposing themselves to the risk of loss (turnover costs, bad tenants, capex, etc.). 

WHEN (yes I mean WHEN not if because over 30+yrs it happens many times) when the market has a drop for whatever reason be it a bad election, war tensions, someone sneezed on there terminal and HFT's went bazerk selling, whatever the cause, WHEN the market drops you get a "Margin CALL" and next thing ya know there not just selling off those leveraged positions BUT there selling em off in the drop, at the lowest price, amplifying losses, all those returns going out the window in moments.     

I see the benefits in it, but not at my current position, I have lots of losses currently and do not need that benefit right now.

@Seidy Lasker Wash sale rules apply to stock options if they are deemed "substantially identical" to a security sold at a loss within 30 days, such as options with similar expiration dates or strike prices.

I am still at a loss why more investors aren't founding REITs or DSTs.