Fund management means operating a pooled real estate investment fund that deploys capital across multiple deals rather than a single property, raising committed capital from investors and investing it according to a defined strategy (value-add multifamily, opportunistic development, debt, or a...
Log in to followI've closed nine deals as a syndicator over five years, all deal by deal, all with the same 30 or so investors. Two of them have started asking why they have to review a new offer…
A sponsor I'd been following for two years opened a $30M value-add fund and had about $8M soft circled for the first close. I asked for the limited partnership agreement and the s…
Working through a first-time debt fund from a shop that's been doing equity deals for years. Loans are bridge, first position, quoted at SOFR plus 450 to 500 with floors, so call…
I have $200k I'm ready to place and two funds in front of me. I've never been in a fund before, only two small LP positions in single-property deals. Fund A: $75M value-add multif…
One of my longest-running clients has been buying apartments for 20 years. He's now raising a $50M debt fund, his first, and offered me a slot at the $100k minimum. I've never inv…
Talking to a manager about a value-add fund and the paperwork keeps saying commitment rather than investment. The minimum commitment is $250,000. My understanding is I sign the su…
Five offerings have come across in the last four months and four of them are credit. Two are first time debt funds from equity shops that have never originated a loan, one is a tr…
Reading my first LPA and the fee section says 2 percent annually on committed capital during the investment period, then it steps down to 2 percent of invested capital after. So f…
I've read the deal-by-deal syndication material and I follow it. Sponsor finds a building, raises money for that building, buys it, runs it, sells it, splits the profit. The fund…
I've been researching instead of buying for a while and I decided the one thing I could do without capital was ask hard questions. So I wrote a one page request and sent it to fiv…
Half the fund decks that reach me now are debt funds. Senior bridge, mezz, preferred equity, some mix. The pitch is consistent: current pay in the 9 to 12 range, first position, s…
The redemption notice came back with a line saying quarterly repurchases are limited to 5 percent of NAV and this quarter's requests exceeded that, pro rated. So I got about $2,40…
Diligencing a first-time value-add multifamily fund. Terms are 2% on committed capital during a three-year investment period, stepping to 1.5% on invested capital after, 8% pref,…
I've been an LP in five deals with the same sponsor, all one-off syndications, all fine. They're now raising a $40M value-add multifamily fund and sent me the PPM. I've read it tw…
I've done passive deals one property at a time for a while and this was my first pooled fund, so I wrote down what I was going to check before I let myself get excited. $75k into…
I've been doing single-asset syndications, four investors to twelve investors, new PPM every time, and the legal bill each round is starting to feel stupid. Someone at a meetup to…
I've been building a list of small multifamily for about eight months. 40 buildings, all 4 to 12 units, all in one metro, and I have offers written on none of them because everyth…
Been comparing two emerging manager structures side by side and they solve the same problem in opposite directions. Structure one is a real blind pool. Investors sign an LPA, comm…
Trades background, so the only diligence I'm actually good at is looking at buildings. A manager raising a second fund of about $25M had 11 assets in the first fund and I asked fo…
2019 vintage, $60M value-add fund, 11 deals, $150k commitment from me. Final distribution landed in the spring and the fund is done at 6.5 years. Realized deal level gross multipl…