What is Private Equity & Real Estate Syndication?
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- Опубліковано 31 січ 2020
- If you're just getting started in real estate, you've probably heard of the terms real estate syndication and private equity funds.
In this video, Jesse Fragale shares what a private equity fund is and how real estate syndications work!
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*Jesse is a commercial real estate broker and investor. He began investing in student rental properties over ten years ago. As his passion for investing grew so did the number of properties he owned. He currently focuses his investments on multi-family apartments.
To learn more about his investment experiences and informed advice on real estate check him out at:
Jesse’s Personal UA-cam: / jessefragale
Jesse’s Instagram: / jfragalz
![Real Estate Syndications - What To Know BEFORE Investing [My Experience]](/img/n.gif)
I didn’t get it. I need visuals.
Private equity sounds like a mechanism that extracts the most amount of value from a business, and transfers that wealth to the few general partners.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
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“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
This is a super helpful video! Everything was explained clearly.
The language here is so good. Thanks!
Great!! nicely explained.
Simple and easy to understand. Well done.
Thanks and thanks for watching!
Great job Jesse !!
Thanks dude.
Great view and informative
Thank you ✌😊
Good video. The decision to invest in one or the other is not like flipping a coin.
I think you should start syndications once you have a couple deals under your belt. Bigger investors might look down upon you if you try to syndicate without knowing too much about the business
There are some great youtubers which can teach you about real estate, such as John Williams, Grant Cardone and many more
I don’t know if I agree with that, you could have years of construction experience and great relationships with multiple developers but just not have any capital. You could bring everybody in and manage construction as your contribution to the deal. Don’t underestimate the power of a GCs relationship with their subs
MeetTheNoxus Hey, yeah I watch thisisjohnwilliams and Graham Stephan as well!
Lee Howard but I think you will have such a higher chance of getting that capital raised if you have hat that trust from others that comes with your experience.
Isaac Johnson they are all great youtubers. Also the John Williams guy is giving away a rental property. Like this is the legit stuff.
Do private equity firms do ground up developments?
multy? preferred term? Overall helpful, but I'm here doing research for resources to help train new hires and there are some big errors in this.
Working selling software to streamline these processes !
If an investor puts money into one of these funds, what are the limitations (typically) on their ability to take the money back out? I'm considering working with some people to establish a PE fund, but don't want to have the thing explode because one of the investors suddenly decides that they want to back out. Also, concerned that if we put our money in, and the fund isn't performing as well as we'd like, that we're trapped if the fund doesn't have an individual investor exit clause.
I'm still getting my head around all the terms and models for this sort of thing, so apologies if I'm asking questions with obvious answers.
Re: real estate syndications, normally a limited partner is in the deal for the duration of the deal. They can't just ask for their money back. The sponsors (general partners) will say what the target holding period is, but that's only a projection, not a guarantee. Sometimes the sponsors exit the deal earlier if there's been faster than expected appreciation and the continued upside doesn't look so good. On the other hand, if a deal has a 10-year projected hold, and around year 10 the market is distressed, the sponsors may decide to hold on until the next upswing in the market (this is especially doable if the deal has solid cash flow).
So all that just to repeat: the limited partners in a real estate syndication typically have their cash tied up for the whole duration of the deal. They aren't getting out.
This doesn’t sound like a way to go for a newer investor that doesn’t have a lot of funds up front, would you agree?
Any book recommendations to learn more on this?
Brandon Turner’s book on investing with no/low money down was helpful!
Great video, however the background music makes it distracting.
🙌🙏
How is profit divided up upon the sale of the property? Also, how is ownership divided up between the managing partner and the limited partners?
In case of syndications there is always a waterfall, in case of a sale first you return the invested capital to the investors, then you pay the preferred return and finally you split 70/30 or 80/20 (whatever you have agreed) with the investors. In syndication property is owned by an LLC which is owned by the investors. The manager of the llc is the syndicator. Hope that answers some questions!
@@francotonelli7861 that comment was better than the video.
Edit: do you syndicate? I have a few rentals myself and have spent yrs in the apartment business. I’m thinking about taking on investors to break into larger multi family properties.
I'm looking to get into loan syndication for flippers acquisition/rehab/cash-out, but can't find anything on the internet that allows me to research what kind of vehicle I need to use. I don't want to have to register with the SEC and syndicate would be deal-specific. I'm looking at deals in the $150k-$300k range each time. Can anyone point me in the right direction. I have more deals to look at than I have funds to loan on them.
Any update on your syndication effort? What market are you in?
Is either one better than the other or does each have its own pros and cons?
How do I start the process and exact steps to do private equity or syndication ?? I have found lot of good deals and looking for some investors to partner with get the deals
I've watched a couple videos by this guy. Still learning the basics about the subject, so take it for what it's worth, but... ua-cam.com/video/FF_PVtHITLI/v-deo.html
Well done!
Thanks!
There's a lot of myth and misconceptions perpetuated about Syndications. The best thing to do is meet with several Syndicators and you'll figure out who you want to learn from and later invest with
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