Due Diligence
Your Guide to Private Market 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?
Understanding Waterfall Structures in Real Estate
Few concepts are more important—and misunderstood—than the real estate waterfall structure. At its core, a waterfall outlines how general partners (GPs) and limited partners (LPs) split profits and losses. But as investors know, what sounds simple rarely is. Sponsors should structure the waterfall to de-risk the investment for LPs. They accomplish this by prioritizing LP…
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