A family business’s ethos is ingrained in the next generation from a very young age. However, the patriarch’s unrelated investments often are foreign to them – rarely discussed or understood. Without careful records and a focus on education and transition planning relating to these noncore holdings, they can become unexpected liabilities. Consider the example of a Midwest investor who built an...
CRE project opportunities, whether you want to get your EB-5 Visa or simply add to your overall investment plan, is like playing chess. Some "moves" (read: securities or real estate sectors) are riskier than others. Carofin wants you to be informed in advance before investing. Assessing Risk/Return High-net-worth investors can select several security structures, each tailored to...
Many individuals invest in real estate directly, but private placement investments furnish advantages not found through other avenues. One advantage is the ability to invest in private placements tailored to your risk profile, investment horizon, and preference for current income or growth. Often, institutional investors fill the senior debt portion of the capital stack, but that is not always...
Investing in hospitality real estate requires a sophisticated grasp of key performance indicators, or KPIs. Three critical metrics offer insights into a hotel’s financial health and operational efficiency: Average Daily Rate (ADR), Occupancy Rate, and Revenue per Available Room (RevPAR). Average Daily Rate (ADR) ADR represents the average revenue earned per occupied room over a specific...
Investing in commercial real estate through a private placement is well worth considering for most high-net-worth individuals once you have reviewed the fundamental differences between categories and applied your appetite for risk to appropriate security structures. Despite uncertainties surrounding factors like sponsor quality, property specifics, the investment’s structure, or the...
If you're considering adding commercial real estate (CRE) to your portfolio and have chosen to invest through private placements, the following four steps can help guide your decisions: Step 1: Define Your Investment Objectives: Pursuing current income or capital gains? Decide whether you are seeking to generate income or capital gains from your CRE investment. This decision will help...
In commercial real estate (CRE) projects, several key parties are involved, with the sponsor—usually the General Partner (GP)—playing the most pivotal role. Gaining a clear understanding of the different types of sponsors and their responsibilities is essential for making well-informed investment decisions. Sponsor Roles and Varieties The GP is tasked with finding, acquiring, developing,...
Passive investing in commercial real estate (CRE) through top-notch sponsors provides investors with current income opportunities, diversification, and potential equity upside that is not correlated to the stock and bond markets. It may provide asset depreciation and tax-deferred exchange as well. It comes in multiple forms and offers unique benefits. One such is multifamily apartments that...
In the interest of accessibility, here are some terms that any investor should be familiary with.
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