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Concepts

July 2, 2017

5 min read

Choosing Between Private REITs And Private Equity Real Estate

At a glance, non-traded REITs and private equity real estate...

At a glance, non-traded REITs and private equity real estate funds are valued at or about the same. However, a non-traded REIT costs more than a private equity real estate fund when it comes to fees. How? There are sales commissions, broker-dealer management fees, and organizational expenses that take 10-15% off of their value.

According to estimates, private REITs regain only a fifth of the initial capital. Investors are often misled by non-traded REITs that list offering prices at probable costs provided that shares are being sold. To put it simply, the offering price is listed as an estimate from a previous investment. The estimation is based on shares being sold against that investment.

Private equity real estate, on the other hand, has a more stable and predictable fee structure by eliminating unnecessary operator fees. The fund acts as the operator and invests at the investor's discretion.

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July 6, 2021

4 min read

Property, Asset, and Portfolio Management in Real Estate

In real estate, particularly within private equity, there are three...

In real estate, particularly within private equity, there are three crucial management layers that investors need to understand: property management, asset management, and portfolio management. Each layer has its unique roles, objectives, and functions, which this post aims to clarify.

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