Masters in CRE

Working as an Investment Analyst for a real estate firm with approximately 6,000 units under ownership, I wear a lot of hats. While my primary responsibilities lie in underwriting, structuring and financing new deals for the firm, I also take on a number of responsibilities that typically fall under the asset management umbrella. While I don't pretend to be anything close to an expert on the subject, I do recognize the importance of the role itself and the asset manager's a

A few days ago I was reviewing my underwriting for the acquisition of a 164 Class B+ apartment community with my firms Director of Acquisitions and our CEO. Due to lack of sale comps (Ohio doesn't require disclosure as you can buy the entity controlling the property), I referenced how a neighboring property recently appraised for approximately 21% more than our purchase price, despite having similar finishes. A good sign to me (we're buying at a 21% discount!), both looked

While many real estate entrepreneurs fund their deals on a one-off basis using a GP/LP structure, there are no shortage of real estate private equity funds that invest their (captive) equity directly in stabilized deals or take on the role of an LP. In later posts I'll discuss the transition from funding deals on a one-off basis to a captive equity model, but first I wanted to touch on one of the most important aspects of managing others hard earned money...communication. Wha

I spent the better part of my professional career working for a boutique investment research firm. In that capacity, I drafted research reports on publicly traded companies involved in the manufacture and distribution of construction materials. During that time, I authored some 2,000 research reports that were blasted to Investment Analysts employed by hedge funds, mutual funds and pensions funds. Along the way, I received tremendous tutelage from a number of well respect

With the advent of crowd funding, investors are now able to invest as little as $1,000 in "institutional quality" real estate investments. Historically, these investments have been walled-off from the greater investment community and offered only to those ultra-wealthy individuals working directly with a Sponsor, Syndicator or Real Estate Private Equity (REPE) firm. While the various crowd funding platforms promise to vet the Sponsors seeking to fund their deals via the mark

In previous posts regarding the LP / GP Relationship and how the GP is compensated above their pro rata share, it's clear that an investment in a physical asset is only as strong as the Sponsor backing that investment. Put simply, investment returns are as much dependent on the asset you are buying as the Sponsor who will be managing the operations and executing the business plan. There are no shortage of good pieces of real estate to own and similarly, no shortage of Sponso

In a previous post on understanding the relationship between a GP and an LP, I touched on how the General Partner contributes a small portion of the required equity, but will generally earn a return in excess of their pro-rata contribution. In effect, the GP earns two streams of income from the property, including: 1) Their pro rata share of the investment (e.g. 10% equity contribution), and 2) A "promoted" interest in the investment returns after some return hurdle is achi

Whether you're about to do your first deal or you're part of a bigger firm that's done hundreds, chances are you're using a combination of your own capital and outside investor equity to fund your deals. Certainly, there are plenty of funds that are investing captive equity (e.g. private equity), but most developers and real estate entrepreneurs are using a mixture of LP (limited partner) and GP (general partner) equity to fund their deals. What is an LP / GP? Private equity

Goals (or resolutions) are fairly synonymous with the New Year. While many view them as passé, over the past several years my wife and I have made it tradition to establish one, three and five year goals. Over dinner, we first sit down and review our goals from the prior year and discuss our progress, what worked and what didn't. For the one year goals, it's pretty simple - did we achieve our goals and if not, what went wrong? For the three and five year goals, the discus