Valoran Capital Management

So says the fund manager who is raising capital followed by, “but, hold on, look at my new offering.”

Do investors need to pay a fund manager fees and carried interest to assemble a successful real estate portfolio? Or can investors build their own portfolio through individual sponsored real estate investments, reduce third-party costs, and manage the strategy themselves?

A fund product managed by a competent manager can look like a great investment for your clients. Not all private real estate offerings have the same boilerplate terms. An advisor should understand the fund terms soon after the initial meeting with the manager. This article will go over some of the main points of fit between an offering’s terms and the clients’ needs.

“Past performance does not guarantee future results” is seared into every track record distributed for all investments. This phrase is so omnipresent in the investment community that it loses its effectiveness as a disclaimer. With this statement ever true, what good is a track record if an investor can't look to the past to evaluate the future?

From 2020 to 2022, rents in markets like Tampa, Orlando, Phoenix, and Austin grew 25%+, SOFR hovered around 0%, and occupancy in the hottest markets exceeded 96%. It was good to be a landlord. Equity capital was abundant, and transaction volume was breaking records. Then the party ended. Rent growth turned negative, SOFR peaked at 5.40% in 2023, and transaction volume plummeted as sellers canceled sale plans.

Many affluent investors already have substantial exposure to real estate before deciding how to allocate additional investment capital to the asset class. They may consider their primary residence, a vacation property, apartment building, property owned by their business, and/or commercial investment property. Others invest in syndicated deals or funds. This article will help investors decide the best vehicle, or vehicles, for investing in real estate.

What is Best for You? Second to private equity, real estate is one of the most allocated asset classes in the alternative space.

Investing in multifamily products can take on different forms of risk and potential outcomes. It can range from risky with the potential of high returns to conservative with ongoing distributions and moderate expected returns. This table describes the main types of investing and potential outcomes for each one.

When offering a memorandum of a property deal lands in your inbox, flip to the model and look at these assumptions. This five-minute check can eliminate a bad deal in a short amount of time without having to spend a lot of time hearing the operator’s story of the opportunity.

Everyone knows the old saying in real estate: “The three most important aspects are location, location, location.” But what actually defines a good location? Two of the most powerful drivers are supply and household incomes.