Now, GE Seeks Others' Money

General Electric Co., which has long been one of the country's largest real-estate investors with its own money, is planning to begin investing money belonging to others.

But GE picked a rough time to get into the fund-raising business. The credit-market crunch has brought deal activity to a near standstill while creating big doubts about property values.

Moreover, the competition in the fund-raising business is fierce. Dozens of hedge funds, private-equity firms and others have hung out vulture shingles, offering investors the prospect of taking advantage of distressed situations and discount prices.

"In general, in a falling market environment, it's ...