Returns

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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REITS AND THEIR INFLUENCE ON CRE INVESTING

This month marks the addition of a new sector to the S&P 500: real estate stocks. Real estate investment trusts (REITs) have evolved into their specialized niche within the broader financial services sector. And with that comes a large influx of capital into real estate, driven up demand by advisors and investors looking for diversification

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3 SOLID REASONS TO INVEST RIGHT NOW IN COMMERCIAL REAL ESTATE

The consistent ebb and flow of supply and demand provide real estate an intrinsic worth in the world of investments. Commercial real estate has long been demonstrated to be one of the safest and most frequent investments throughout history. It has enabled millions of investors to achieve good returns, establish a stable cash flow, and

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8 RISK FACTORS EVERY REAL ESTATE INVESTOR SHOULD KNOW

There is a trade-off between risk and reward when it comes to investing; in most cases, the bigger the risk, the greater the potential for significant gains and losses of invested stock. We intuitively know that better returns are achievable by taking on more risk in the investment process. However, how much is too much?

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7 METHODS TO AVOID THE IMPACTS OF RISING INTEREST RATES ON REAL ESTATE

Since interest rates are impossible to predict and can significantly affect a property’s value, they are one of the trickiest things to handle when investing in real estate. Borrowing money is an expensive proposition when interest rates are high. It can make a certain amount of money from a property, and all of it goes

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REAL ESTATE INVESTMENT: CREDIT VERSUS EQUITY

Comparing Real Estate Equity to Real Estate Credit is important for investors to understand so that they may deploy their portfolio assets wisely. Credit in the real estate industry is borrowing. Loans made by investors in real estate debt are a form of indirect equity investment. To have equity in a property means to own

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THE ROLE OF A WEALTH MANAGER IN INCREASING YOUR INVESTMENT RETURNS

A previously highly valued service given by wealth managers, who construct investment portfolios using just stocks and bonds, has become commoditized due to the rise of passive investing. Thirty years ago, these were the only options they had for purchasing anything. For a long time, “smart managers” were able to attract clients by promising to

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4 MARKET FORCES ARE FUELING THE GROWTH OF COMMERCIAL REAL ESTATE FUNDS

Every investor with a significant amount of capital wants to make money and amass riches over time. The cash flow, price appreciation, and tax benefits commercial real estate offers can help investors accomplish these objectives. Given rising property prices, interest rates, and the variety of available options, it can be difficult to choose how best

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