Differences Between Preferred and Common Equity
Preferred and common equity are both forms of ownership in a real estate project, but they differ in their rights and priorities. Preferred equity has payment priority when distributions are made or a capital event occurs. However, it also carries a target fixed rate of return. Conversely, common equity offers the potential for outsized returns […]
Maximizing Real Estate Investments: A Guide to Return Metrics and Equity Structures
INVESTMENT RETURN METRICS AND EQUITY STRUCTURES I often hear questions about return metrics and equity structures for real estate investments. Return metrics assess an investment’s profitability, while equity structures provide a framework for distributing net cash flow, returning capital, and allocating profits to investors. There isn’t one universal way to structure equity in an […]
Multifamily Real Estate – A Value Add for Wealth Managers
WHY MULTIFAMILY INVESTMENTS? For RIAs seeking to complement traditional portfolios with alternatives that offer income, long-term growth, and downside protection, multifamily has long been considered the favored real estate asset class. The sector has stood the test of time and proven its resiliency, even during the most challenging economic events. The National Council of Real […]
Is Real Estate Syndication Worth It?
Let’s get right to it. Is real estate syndication worth it? Yes–if you’re the right type of investor. For Certain investor profiles, it can offer unique advantages. Real estate syndication offers accredited investors the chance to earn truly passive income, diversify their portfolio beyond stocks, bonds, and traditional real estate, and take advantage of some […]