Hey Justin in your experience, if an employee at an REPE firm decides to invest some of their own capital into one of the deals, is their investment treated as a GP or LP in terms of returns?
yes and no. yes as in you become a part of the capital stack and get paid after x and before someone else. But no as in the firm might hold the GP position then a seprate contract is made with you. Independant of the jv agreement.
In my experience, younger employees are usually only able to invest in the LP position. Obviously this varies to company to company (and senior executives will participate in some of the promote), but analyst/associate investment opportunities are usually subject to LP terms.
Hey - do you have any videos or can you make one on commercial real estate jargon? I’m in year 5 of my acquisitions career and still haven’t gotten a lot of that down. Still Feels like a foreign language to me
The easiest way to do it - ask friends from the construction area the building cost of sq m for specific type of a real estate, another way - you can try to request commercial proposal from firms again for specific type of building. In most cases it would be enough to understand at what level (below a replacement cost or not) you are trying to make a deal P.S Don't forget to add a land value. Since a replacement cost includes it
What are some principles or rules you use when analyzing real estate deals?
This channel is such a great resource. Thank you, Justin!
Hey Justin in your experience, if an employee at an REPE firm decides to invest some of their own capital into one of the deals, is their investment treated as a GP or LP in terms of returns?
At my firm VPs and above get pref
yes and no. yes as in you become a part of the capital stack and get paid after x and before someone else. But no as in the firm might hold the GP position then a seprate contract is made with you. Independant of the jv agreement.
In my experience, younger employees are usually only able to invest in the LP position. Obviously this varies to company to company (and senior executives will participate in some of the promote), but analyst/associate investment opportunities are usually subject to LP terms.
Would be great if you were to cover some of your own real estate Investments
Phenomenal video, Justin. Such powerful reminders of what to focus on. Thank you. -Jordi
Hey - do you have any videos or can you make one on commercial real estate jargon? I’m in year 5 of my acquisitions career and still haven’t gotten a lot of that down. Still Feels like a foreign language to me
How do you come up with an accurate calculation for a property's replacement cost?
The easiest way to do it - ask friends from the construction area the building cost of sq m for specific type of a real estate, another way - you can try to request commercial proposal from firms again for specific type of building. In most cases it would be enough to understand at what level (below a replacement cost or not) you are trying to make a deal
P.S Don't forget to add a land value. Since a replacement cost includes it
@@MegaRedemax great feedback - very well said!
@@BreakIntoCRE thank you!
@@MegaRedemax I thought replacement cost did not include land. At least that’s how it’s thought of in the insurance industry. Greetings!
@@MegaRedemax I thought replacement cost did not include land. At least that’s how it’s thought of in the insurance industry. Greetings!
Another great video from the yoda of real estate. Thanks!
Hahaha
Truly inspiring, knowledgeable, information.
Awesome !!
💯