Have you ever wondered what is private equity and how to invest in real estate private equity deals? Or what are some of the requirements you need to have to even partake in this type of investment?. In today’s Money Checkup, I’ve invited Rachele Voigt on the show to provide her expertise and insight if you are exploring this asset class to diversify your portfolio. She goes over some of the common terms for you to understand and some things to watch out for when you are doing your due diligence.
Rachele is a Senior Associate at MLG Capital, a national real estate investment and private equity firm. She started her career working for a financial services firm before getting into real estate. At MLG, she mostly works on fundraising efforts from high net worth individuals, RIA’s and Multi-Family Office’s, while helping maintain current investor relations and finding acquisition opportunities in the state of Wisconsin.
What We Will Cover
- How Rachele got into the real estate industry
- How companies are combating against the real estate downside risk
- The importance of doing your due diligence when looking at a real estate private equity deals
- Questions to ask when evaluating the team that managing an equity fund
- An explanation of leverage point
- The different types of debt that you might see in a commercial real estate deal
- A description of a preferred rate and an annualized Internal Rate of Return (IRR)
- Why you should understand your own risk tolerance
- A few examples of the types of fund diversification
- A definition of deal flow and what that looks like
- What is meant by a syndication
- Some of the fees you can expect to pay
- How the commitment based type of investment works
- How returns are divided between managers and investors and when that occurs
- The outcome if the preferred return is not met for the year
- An explanation of equity multiples and what you might see in the industry
- The requirements to be an accredited investor and what it means for these types of deals
- How these types of investments can impact your taxes
- A few tips for you if you’re interested in investing in this asset class
- Some advice for seasoned investor on where to go next in your portfolio
Getting Connected With Rachele
Links We Mentioned
- SEC’s definition of Accredited Investor
- MLG Website
Click here if you want to read the transcript instead!
The Ins and Outs of Real Estate Private Equity Investments with Rachele Voigt
