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 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...
The traditional asset allocation model that Registered Investment Advisors (RIAs) have followed since the mid-twentieth century is undergoing a profound transformation. Alternative assets are edging closer to “core” investments, including within this broad category, private placements. This shift reflects the evolving dynamics of public and private markets, the growing scale and performance of...
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...
“Be Prepared” is the Boy Scouts’ official motto. It was constantly drilled into my 11- to 18-year-old brain over 50 years ago as we planned our troop’s many camping trips in the hills of eastern Kentucky. And it has stuck with me as the starting point for my countless subsequent adventures. I’m now an investment banker, who specializes in raising private equity and debt for young companies —...
In the interest of accessibility, here are some terms that any investor should be familiary with.
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