Successfully cultivating investment opportunities for a private capital network involves carefully balancing the desire for strong investment returns against the risk inherent in achieving those returns. Risk is increased in times of uncertainty, and the current economic situation has investors asking how to effectively (and safely) allocate their capital. We believe that with the right sponsor partners, strong execution in the form of comprehensive underwriting, deal evaluation, and favorable investment structures, investors can find Alpha – excess return above the market - in a variety of different market conditions. This article explains how Alpha Investing is structured to source high-caliber sponsors and provide strong risk-adjusted opportunities to its members.
Commercial real estate, given its illiquid nature, is generally much slower to respond to economic shocks such as the COVID-19 crisis, however, the impact is certainly beginning to unfold as well. Whether you’re a long-time investor or someone who’s just getting started, it’s important to be prepared for recessions such as these.
Real estate syndication makes it possible for sponsors to invite multiple parties to pool their resources together and invest in properties that would otherwise be either too expensive for them to buy individually or difficult to find due to lack of access.