With no need for a centralized authority, blockchain technology is completely reengineering our existing systems and services.
A successful real estate investor and financial coach shares how she went from a timid first-time buyer to a confident landlord and owner.
An accomplished real estate attorney and investor shares his keys to success for growing a business and investing strategically in prosperous deals, all while maintaining a charitable focus that gives back to the community.
Historically, private equity real estate investing was arranged through syndications that were only open to friends and family, or people with whom the deal sponsor had some sort of personal relationship. It’s often been referred to as “country club” equity for this reason. There was an underlying assumption that this relationship had been pre-vetted to some degree, and therefore, investors had enough confidence in the sponsor to write a check that would translate into positive returns.
The nature of private equity real estate investing changed dramatically in 2012 with the passing of the JOBS Act, a federal regulation that eased the requirements about who can invest in private equity real estate and under what conditions. Now, there are more efficient mechanisms by which investors can invest – namely, through private capital networks.
While returns have dominated the CRE conversation over the past decade of growth, recent events, namely the volatility and unprecedented economic shutdowns caused by COVID-19 have amplified many investors concerns about the other side of the coin: risk. From hotels to shopping centers to office buildings, people are paying attention to risk. The market has already experienced tremendous change and it is difficult to forecast which further changes will occur.
However, what we are currently facing is far from unprecedented. In 2008, for example, many opportunistic investors were able to capitalize on a rapidly changing real estate market. Even a brief look at our economic history, dating from the Great Depression to the present, will reveal that moments of great uncertainty are often followed by moments of great opportunity.
As a developer or sponsor, part of your job is to explain this brave new world to investors. With the right mindset—and with supporting data—you can address their concerns and help them overcome the fear of the unknown.