Hard assets

Hard assets are the tangible property of a company or partnership, such as the buildings, furniture, real estate, and other equipment it owns.

When you make a direct investment in hard assets, as you do when you invest in a direct participation program (DPP), you have an ownership interest in the actual assets rather than in shares of the corporation.

The profit, if any, that you realize from hard assets is dependent on their ability to produce revenue, as a rental property or a leased airplane might.