Investing in Private Real Estate | AWM Insights #113

In last week’s episode, Brandon and Justin started the discussion on real estate investing – hitting on topics like where and how to invest, public vs private, and types of properties. With the foundation now laid out, they dive deeper this week into how to actually go about investing and assessing whether you’re getting the returns you deserve.

They continue their conversation by focusing on private real estate investment and covering how to think through real estate investment deals, finding specialized help, and understanding the trade-offs between investing on your own or investing in a fund.

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EPISODE HIGHLIGHTS

• (1:45) Refresher on the types of real estate investments
• (3:48) Focusing on private real estate
• (5:00) What does the due diligence process look like to vet deals?
• (5:55) What stage is the property in?
• (6:48) What’s your edge?
• (7:43) Identifying value add properties – what improvements need to be done?
• (9:20) The opportunities and tax implications of development projects
• (11:06) Finding diversification through a fund
• (12:08) Promoter carried interest and hurdle rates 
• (13:38) Understanding the costs of property and asset management
• (15:29) Finding specialized help
• (17:00) The importance of a good banking relationship