Finding the ideal balance of risk and return is necessary for maintaining an investing portfolio. Higher returns may be found in private equity real estate and public real estate investment trusts (REITs), which may also decrease the total volatility of a portfolio. Both will improve a standard stock and bond portfolio. So, which is the […]
HOW PRIVATE REAL ESTATE AND REITS CONTRIBUTE TO PORTFOLIO BALANCE Read More »
History has repeatedly shown that trying to time the market can be successful in the short term for some people but is a fruitless venture over the long term. Looking at the stock market as an example, the data is overwhelmingly compelling for this claim. Between 1998 and 2017, the stock market returned an average
PRIVATE REAL ESTATE DOLLAR-COST AVERAGING Read More »
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 »
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
10 BEST TRENDS IN PRIVATE REAL ESTATE INVESTING Read More »
Recent market volatility and global shifts in the business climate make it increasingly likely that a recession of some severity is imminent. Public real estate investment trusts (REITs), a leading indicator of private real estate, are down significantly, while stock markets are down by almost 20 percent. The December 2018 market drop of 15% occurred
OPPORTUNITIES AND THREATS IN A VOLATILE PRIVATE REAL ESTATE MARKET Read More »
Fair market value, tax basis, and unreturned capital balance are the three primary metrics private real estate managers use to report on their holdings’ health. The true worth of a financial asset is reflected by its fair market value. It can’t reconcile contributions and distributions appropriately without knowing the taxpayer’s tax base. Ownership and distribution
3 MUST-KNOW REPORTING TECHNIQUES FOR PRIVATE REAL ESTATE INVESTORS Read More »
The commercial private real estate market will begin to recover from the pandemic this year, but it will be a slow and rocky road to total health. Some parts of the real estate market may fare badly in the first quarter and the beginning of the second quarter due to the worsening epidemic. Some areas
10 LEADING PREDICTIONS FOR PRIVATE CRE INVESTORS Read More »
In private real estate investing, a preferred return is the minimal rate of return an investor must obtain before an investment manager may earn a performance fee. In real estate investing, the recommended return is often between 6 and 9 percent, depending on the risk of the venture. You may think of this as an
A GUIDE TO PREFERRED RETURN IN PRIVATE REAL ESTATE INVESTING Read More »
Private real estate may be used as a hedge against the stock market due to its low correlation with stocks and bonds and its lagged rise and decline relative to the economy. Not only do well-selected properties tend to keep pace with inflation and maintain their value, but they also provide investors huge perks, such
WHAT PERCENTAGE OF YOUR INVESTMENT PORTFOLIO SHOULD BE IN PRIVATE REAL ESTATE? Read More »
