Private Equity Real Estate – Real Estate Investment Training and Advice

Private Equity Real Estate
Investing in High Quality Real Estate

Private Equity Real Estate

Private Equity Real Estate

Private Equity Real Estate firms use equity and debt to acquire real estate, improve that property, and then sell it for a profit.

Private-equity firms use other people’s money to buy assets. Then they use the earnings from those assets to pay back the debt. After a few years, they’re left owning the assets outright and can sell them back to the public via a new IPO.

In short… they engineer deals that enable them to transform debt into equity.

Private Equity Real Estate follows four different strategies and they are: (1) Core, (2) Core Plus, (3) Value-Added, and (4) Opportunistic.

Core – Less than 10% IRR (Internal rate of return is used to evaluate the attractiveness of a project or investment.)

Core Plus – This is a moderate-risk/moderate-return strategy. The fund will generally invest in core properties; however, many of these properties will require some form of enhancement or value-added element.

Value-Added – This is a medium-to-high-risk/medium-to-high-return strategy. It involves buying a property, improving it in some way, and selling it at an opportune time for gain. Properties are considered value added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.

Opportunistic – This is a high-risk/high-return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, mortgage notes, and niche property sectors. Investments are tactical.

Real Estate Investment Banking

Linton Global Real Estate is a real estate investment firm based in the greater Chicago area. We can be reach at (312) 612-1031.

Private Equity Real Estate – Real Estate Investment Training and Advice

The purpose of Private Equity Real Estate Firms is basically the same as normal Private Equity Firms and LBO’s ….. they use debt and equity to acquire property’ grow it over time and then sell it for a profit.

Financial modeling for real estate tends to be simpler for real estate than for normal companies.

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