Private Equity Real Estate Investments

There are many different types of Real Estate Investments available today. In fact, there are so many different investment vehicles that it's nearly impossible for the average investor to make sense of all of them. Surprisingly, one of the most common investment types is one that most people have not heard of, or at least know very little about. This is the Private Equity investment.

Private Equity Real Estate investments are actually quite common, yet most people don't know anything about them. This is due in part to the fact that Private Equity investments are not readily available to the mass market. Typically speaking, and investor that actively looks for a real estate investment is going to find a limited number of choices. These are usually "buy and hold" properties (for income generation or speculative purposes), "buy and flip" properties (purchase for quick resale), Real Estate Investment Trusts (REITs), real estate funds and pre-construction properties (a slightly different twist on the "buy and hold" or "buy and flip"). All of these investment types are available in both the residential and commercial markets, and in some cases, include properties in both.

Private Equity investments, though used widely, are generally not on most peoples' radar. This is because they tend to be investments that are offered to investors through friends, family and business associates. As such, they are not widely publicized to the mass market and thus, out of reach to the average person. These investment vehicles are used in both residential and commercial real estate and are used for all different types of projects, whether the mission is to acquire income properties or to build a new construction project.

The Private Equity concept is very simple. An investor puts cash into a project in return for a portion of the profits. The investor generally makes this investment on a passive level, meaning he or she does not take an active role in the project. However, every project can be structured differently in terms of the investor's role and how the return is provided on the capital invested. The source of these investments can vary widely as well. It could be an investor giving a relative the money they need to buy that "sweet deal" of a fixer-upper or it could be a multi-million dollar development project.

Real Estate is, by far, one of the safest investments one can make. Despite market fluctuations like we've seen in the U.S. over the last few years, real estate has historically seen steady increases over time. In addition, when you invest in real estate you have something tangible, not a certificate that says you own X shares in Y Company. A balanced investment portfolio should of course, include stocks, bonds, mutual funds and the like, however people that had their entire portfolio in these types of investments have paid the price the last few years. As bad as the real estate market was, if you look at the broader markets, it's difficult to say that it was worse than the stock market.

Here, we will explore some of the different types of investments that commonly use private equity. If you are an investor and are interested in Private Equity Real Estate Investments, please feel free to contact us and we can let you know of any available projects that we are aware of.