Know How to Evaluate & Manage Real Estate Investment Risk
Risk is the foundation of economic progress. If you avoid risk, you will inevitably miss economic opportunities. The key to taking risk with any investment is the ability to identify, control, and manage your risk, especially as it relates to anticipated returns. So how can you identify, control, and manage your risk with real estate investments when the market is constantly changing?
The Truth About The Need to Align Professional Interests: Want Flush Advice to Fulfill Real Estate Syndications?
Investor Alignment Starts With Shared Incentives In every real estate syndication, the general partner (GP) and the limited partners (LPs) play different but interconnected roles. The GP typically contributes a smaller share of the equity but takes responsibility for acquisition, financing and day-to-day operations. Meanwhile, the LPs contribute the majority of the capital and take…
What is a Waterfall in a Real Estate Syndication and Why is it Important?
In a typical real estate syndication, a waterfall structure allocates the profits or losses from the investment to the limited partners (LPs) and the general partner (GP). This is done according to a predetermined formula, or “waterfall,” and this formula is documented in detail in the partnership’s Operating Agreement. The most obvious goal of a…
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