How Private Equity Real Estate Companies Make Money

Very Nice video keep posting . Acknowledgement from India.

I work in a company that does basically this but with a specific type of business as opposed to real estate.

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?

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.

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?

How different is disposition fees different from a brokerage? Didn't understand what construction management activities that GPs carry out?

Hey, interested in the free crush course

where is the link for crash courses

thanks started a role on the external reporting end of a REPE firm, this is helpful.

Really nice video. Since we have some clients from gulf , Can you please make a video on Murabaha role in Real Asset .

Really good information and very clear and concise. Thank you!

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.

Great channel and info. Thanks

Excellent! Thank you

thanks so much for the simple explanation!! love your videos

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.

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.

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?

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?

Are PE firms almost always the General Partner?

Exactly the contact I’ve been searching for

REPE sounds a lot like being a broker

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?

Hi Justin i need more info

it would be helpful if you provided examples with arbitrary numbers

@BreakintoCRE great video. Can you touch on how much capital the GP will be expected to commit as a percentage of the deal?

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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?

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