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. Everyone loses - the business, the employees, the local consumers, the tax payers.... except for the general partners!
@Sarah-ui3vd3 ай бұрын
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.
@MileyHumphrey-ql4jp3 ай бұрын
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diversify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
@Joseph-zw3sb3 ай бұрын
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
@MileyHumphrey-ql4jp3 ай бұрын
Angela Lynn Shilling a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
@Joseph-zw3sb3 ай бұрын
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
@kevinalexanderman9893 жыл бұрын
The private equity firm does not "promise" a return to its limited partners. It is a potential upside ROI, and includes risks of failure to achieve the return. The use of the word "promise" is only valid in a loan, not an equity investment.
@alisaidu1221 Жыл бұрын
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities..
@bridgetrussell5903 Жыл бұрын
Keep it simple in the beginning. Buy something, like an index fund, and hold. Educate yourself in the meantime and elevate your risk tolerance over time.
@joshuaporter4965 Жыл бұрын
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@aishatuyusufinusa3593 Жыл бұрын
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@minnyf701 Жыл бұрын
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@seanpeters55794 жыл бұрын
thanks started a role on the external reporting end of a REPE firm, this is helpful.
@dseer134 жыл бұрын
I work in a company that does basically this but with a specific type of business as opposed to real estate.
@BreakIntoCRE4 жыл бұрын
Nice - I've never worked in general private equity outside of real estate, but from what I understand, the fee structures and waterfall/promote structures are generally pretty similar. Interesting to hear that's the case with your company. Thanks for the comment!
@fidel2xl3 жыл бұрын
Hey, Justin --- Great content. But I just have two questions, though: With regards to the Acquisition Fees (#1) and Disposition Fees (#4), does the Fund Manager require a Real Estate license to benefit from these fees? Or are they exempt from Real Estate licensing requirements since they are principals of the fund that is making the R/E acquisition and disposition? And with regards to Asset Management Fees (#2) and Promoted Interest (#5), does the Fund Manager require a Securities license (Series 65) to benefit from these fees? Or are they exempt from Securities licensing requirements? Thanks.
@projekts5047 Жыл бұрын
it would be helpful if you provided examples with arbitrary numbers
@BitcoinMoonBoys4 жыл бұрын
Hey can this still be done on a MUCH smaller scale? Like if I wanted to pool some money together from some friends and purchase a property 100k-500k? Would it still be done the same buying residential housing rather than commercial?
@BreakIntoCRE4 жыл бұрын
Yes, the same underlying concepts would apply.
@ahmedhamed10923 жыл бұрын
Exactly the contact I’ve been searching for
@PhillyEagles9933 жыл бұрын
thanks so much for the simple explanation!! love your videos
@Mixtapemelon4 жыл бұрын
Really good information and very clear and concise. Thank you!
@buhlegumede89393 жыл бұрын
Great video. As the GP, would it be adversely deemed fair if you included all these fees in your fund or should you try to mitigate your fees as much as possible? For example, would it be frowned upon to charge investors a disposition fee if you still earn a carried interest in the deal as the fund? What combination of these fee structures are most common in the space?
@jacobkardanimoghaddam18522 жыл бұрын
In my experience, funds are created w/ all of the fees mentioned in the video. The only contingency is there might be earn-out caps. In theory if you are hitting all of the promotes / hurdles, the investors should be making enough of a return where they are happy to pay.
@buhlegumede89392 жыл бұрын
@@jacobkardanimoghaddam1852 thank you. Much appreciated for this.
@simfinso8585 жыл бұрын
Very Nice video keep posting . Acknowledgement from India.
@BreakIntoCRE5 жыл бұрын
Thank you!
@thelokbojfamily95014 жыл бұрын
Great channel and info. Thanks
@josephtagliente6894 Жыл бұрын
@BreakintoCRE great video. Can you touch on how much capital the GP will be expected to commit as a percentage of the deal?
@floaterof174 жыл бұрын
Excellent! Thank you
@bluejeremzz Жыл бұрын
Hi May I check where does all the fund admin cost lies? Is it in Management fees? Or it should be separately deducted from the fund Cashflow?
@nikhiliyer93714 жыл бұрын
How different is disposition fees different from a brokerage? Didn't understand what construction management activities that GPs carry out?
@BreakIntoCRE4 жыл бұрын
Hey Nikhil, these are additional fees on top of brokerage commissions. Brokerage commissions go to the broker, disposition fees go to the GP. GPs will manage construction of major renovation projects or tenant suite build outs, which can require a lot of time and energy on their part.
@dipakgaikwad32054 жыл бұрын
Really nice video. Since we have some clients from gulf , Can you please make a video on Murabaha role in Real Asset .
@anishkhasa581 Жыл бұрын
How do u find these clients from the gulf?
@josuemiamire3 жыл бұрын
REPE sounds a lot like being a broker
@elliotabel48404 жыл бұрын
Awesome Video, can you tell me who pays the Acquisition fees? Is it paid by the limited partners? In addition to the amount invested? or is it baked in in advance? Also, you say “if” you can get the debt, can you tell me more about what it takes to be able to secure good debt? Does a general partner need to have a really high net worth?
@BreakIntoCRE4 жыл бұрын
Hey Elliott, the acquisition fees are included in the total cost to close the project (usually paid through escrow), so the LPs are paying that fee to the GP, but indirectly through closing (not cutting a direct check to the GP). Securing debt depends a lot on your experience as a GP. If you're just starting out and buying smaller (
@BreakIntoCRE4 жыл бұрын
Hey Elliot, the acquisition fees are included in the total cost to close the project (usually paid through escrow), so the LPs are paying that fee to the GP, but indirectly through closing (not cutting a direct check to the GP). Securing debt depends a lot on your experience as a GP. If you're just starting out and buying smaller (
@elliotabel48404 жыл бұрын
@@BreakIntoCRE it does! Thank you very much. Do you have any insights on non recourse loans?
@BreakIntoCRE4 жыл бұрын
@@elliotabel4840 yes - I made a video on this recently: kzbin.info/www/bejne/bF6llpp_oqyJm5o
@Jdog2332 жыл бұрын
Hi are these fees charged annually. for e.g. 500m fund 1% management for every year? Or is it just 1% once capital is raised and thats it for the life of the fund?
@TokyoTaisu2 жыл бұрын
asset management fees usually yearly
@maryr66894 жыл бұрын
I like your videos but am wondering why your business does not come up when I search the better business bureau website nieither Breaking Into CRE nor JBK Enterprises, LLC shows up.
@BreakIntoCRE4 жыл бұрын
Hi Mary, I'm not registered with the BBB - I haven't felt the annual fees to be necessary for my business. I have over 5,200 reviews on my courses on Udemy with one of the highest ratings on the platform, which I think speaks a lot more to the quality of my paid training than paying for an accreditation. I wasn't aware this was a concern of some of my viewers, though, so thank you for pointing this out!
@tsp88553 жыл бұрын
Are PE firms almost always the General Partner?
@davidbergeron98653 жыл бұрын
I understand acquisition fees for core deals but do you still charge full acquisition fees on a build from scratch where the development fee is very high?
@roberttg37673 жыл бұрын
Yeah there are land transfer costs, legal etc...So you might have Land: 100, Land Transfer Cost 1.5 (1.5%), Legal .25 (.25%) etc... So Land Acquisition = (100 + 1.5 + .25) = 101.75
@kanwaljitdhunna16334 жыл бұрын
where is the link for crash courses
@BreakIntoCRE4 жыл бұрын
Hi Kanwaljit, the link is in the description of the video.
@aprendetrading2 жыл бұрын
Hi Justin i need more info
@solomonwilson-g4v19 күн бұрын
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
@toninogroup4 жыл бұрын
Hey, interested in the free crush course
@BreakIntoCRE4 жыл бұрын
Hey Anthony, the link for the Crash Course is in the video description.
@Bismarkdee-b9n20 күн бұрын
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
@solomonwilson-g4v20 күн бұрын
Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.
@rosmelybastidas61084 жыл бұрын
This was great, I have been researching "group funded real estate" for a while now, and I think this has helped. Have you ever come across - Ponasson Estate Earthman - (search on google ) ? Ive heard some decent things about it and my m8 got cool success with it.