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Plain-English guides to private real estate investing

How private real estate deals are structured, financed and run, explained without jargon. Written for investors who want to understand the terms before they evaluate a sponsor or a deal.

Educational articles. Not investment advice. Read the securities disclaimer

Start hereFundamentals

What sponsors and investors each do in a private real estate deal, how deals are structured and paid, and what to ask a sponsor before you invest.

Category
Fundamentals
Reading time
6 minutes
Updated

The library

More guides

Fundamentals

Debt vs. Equity Real Estate Investments

How lending against real estate differs from owning it: where each sits in the capital stack, how each is paid and who absorbs a loss first.

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Strategy

How Value-Add Real Estate Creates Value

How value-add investors raise a property's income through renovation and better operations, how that income sets value, and what can go wrong.

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Investor Basics

Understanding Cap Rates

What a cap rate measures, how to calculate it from net operating income, what moves it, and where it falls short as a measure of a deal.

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Strategy

How Real Estate Refinancing Works

Why sponsors refinance a stabilized property, how lenders size the new loan, where the proceeds go and what can stop a refinance.

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Investor Basics

What Is an Accredited Investor?

The SEC's accredited investor tests for individuals, entities and trusts, why they matter in private offerings, and how verification works.

6 min read

How We Work

How We Evaluate an Acquisition

The questions we work through before buying a property: the market, the building, the numbers, the plan, the financing, the exit and the downside.

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Aerial view of a new single-family subdivision under construction beside a pond and pine forest

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