September 2023

QUALIFIED OPPORTUNITY ZONE INVESTING 101

Have you ever wondered what the fundamentals of investing in Qualified Opportunity Zones are? Here is a quick but precise 101 knowledge you must know to enable you to climb the stages toward effective investing. Many people were wary of Qualified Opportunity Zones, which have the potential to delay or exempt from taxation billions of […]

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9 MAJOR MISCONCEPTIONS ABOUT OPPORTUNITY ZONE PROGRAM

This year has seen a flurry of coverage about Qualified Opportunity Zone (QOZ) real estate investment. Since the launch of this program and our QOZ Fund, our investor relations staff has received hundreds of calls. In some cases, investors are eager to get involved right away, while others are intrigued and want to learn more about

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QOZ FUNDS AND TAX REPORTING: WHAT YOU NEED TO KNOW

Qualified Opportunity Zones (QOZs) are economic development zones. To that end, they provide three significant tax breaks to encourage investor participation: capital gains moratorium until 2026 on capital gains reinvested into a QOZ; capital gain reduction of up to 15% on reinvested capital gains; and, most importantly, If the QOZ investment is held for at

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SIGNS OF AN UNPROFITABLE REAL ESTATE INVESTMENT

The daily fluctuations of the market are unpredictable and carry the inherent risk of investing. However, even when the market is on an investor’s side, they still need to be wary of the hidden risks that could lead to a loss. Due to its perceived complexity, hefty fees, and risk of Madoff-like schemes, many investors

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FACTS ABOUT PRIVATE EQUITY WATERFALLS, CLAWBACKS, AND CATCH-UP CLAUSES

In private investing, waterfalls, clawbacks, and catch-ups are phrases used to explain how distributions flow from the investment to the partners, what happens if things don’t go as expected, and the manager’s performance fee concept. Knowing how an investment’s waterfall works is critical because an unfavorable one might tip risk in the investor’s favor. The

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EXAMINING DISCOUNTED CASH FLOW IN COMMERCIAL REAL ESTATE

All financial assets, including commercial real estate, can be valued using discounted cash flow analysis (“DCF”). The underlying premise is simple: today’s dollar value exceeds tomorrow’s value. The total of all future cash flows discounted for risk is the worth of an asset. The sum of money an investor is prepared to spend on a

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DEFINITION OF “SIDECAR” IN RELATION TO REAL ESTATE INVESTING

Private real estate investment funds with a diversified portfolio can’t put all their eggs in one basket, no matter how promising a property’s future looks. However, for some investors, the additional risk and potential reward of riding a shotgun in a sidecar are worth it. Fund management makes sidecar investments available when a high-quality asset

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10 BEST TRENDS IN PRIVATE REAL ESTATE INVESTING

Despite the pandemic, private real estate sectors experienced spectacular recoveries, including multifamily housing, industrial, and life sciences, according to the Urban Land Institute’s Emerging Trends in Real Estate report. Nonetheless, private real estate investing is affected by the coronavirus. Investment decisions, on the other hand, cannot be put off indefinitely. Higher risk is now the

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