investing
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When Is It Real Estate and When Is It Just Finance in Disguise
A friend recently told me about an investment he made in the United States. It was a loan to a multifamily project, secured by land. I asked him: What attracted you to this deal?He answered: What do you mean? The real estate! This is a common response. Many investors actively seek exposure to real estate.… Continue reading
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The Capital Already Spent Trick
Real estate investors are not only number crunchers. They are also storytellers. They tell themselves and others stories about why a certain deal makes sense. And sometimes the story is not about the property itself but about the money that has already gone into it. This is where one of the most interesting mental tricks… Continue reading
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Why Investors Choose Excess Equity Contributions
In real estate joint ventures and M&A deals, you’ll sometimes run across a structure called “excess equity.” It’s a situation where an investor comes into a project or company and is asked to contribute more capital than their share of profits entitles them to. For example: imagine you’re a 50% profit partner in a development deal, but… Continue reading