Just like the title asks: Which is better? Private equity-owned real estate OR publicly traded REITs? Well surprisingly, the answer is BOTH. Yes, that is right, both are needed by strong portfolios. There really is the better deal in this case as they can give similar yet varying results, and oftentimes they work very well […]
PRIVATE EQUITY-OWNED REAL ESTATE VERSUS PUBLICLY TRADED REITS Read More »
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
FACTS ABOUT PRIVATE EQUITY WATERFALLS, CLAWBACKS, AND CATCH-UP CLAUSES Read More »
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
REAL ESTATE INVESTMENT: CREDIT VERSUS EQUITY Read More »
The function of financing in the successful completion of a commercial real estate transaction is crucial. Commercial real estate transactions, however, can access a wider variety of funding choices than their residential counterparts. This abundance of choices can be daunting for inexperienced investors. Investors may not know which sources of financing are best when underwriting
DIFFERENTIATING PREFERRED EQUITY VS JOINT VENTURE EQUITY Read More »
One needs to understand the various risk/reward profiles and the capital stack while doing due diligence. All investments in real estate eventually include either the land itself or the buildings situated on it. On the other hand, investing in real estate may be done in two distinct ways: via loan or equity. Understanding the distinctions
DEBT OR EQUITY? – WHERE SHOULD YOU INVEST YOUR MONEY? Read More »
Understanding of Equity Waterfalls When investors go from residential to commercial real estate, they are confronted with a whole new and sometimes perplexing lexicon. The majority of this new terminology pertains to commercial lending. The notion of equity waterfalls, in particular, confuses many novice investors. Despite the complexity of these currency distribution schemes, their core
WHAT IS EQUITY WATERFALLS? Read More »
Introduction: Do you want to know how the Internal Rate of Return can be manipulated? Check the answers here! What Does “Internal Rate of Return” (IRR) Mean in Investment Terms? Financial analysts use the internal rate of return (IRR) to indicate a potential investment’s profitability. In a discounted cash flow analysis, an IRR discount rate
INTERNAL RATE OF RETURN (IRR) MANIPULATION IN PRIVATE EQUITY Read More »
