Other benefits to raising capital through a real estate fund: It allows you to attract larger commitments from larger investors, and it helps you to build relationships with institutional investors and gain their trust. This gives you added marketplace creditability and attracts others to invest alongside them.
This means larger funds, more capital to invest, better investment opportunities, more management fees and momentum for the next fund.
When launching a real estate fund, there are critical questions fund managers should ask themselves before they approach investors. For example, what is the real estate fund’s clearly defined strategy? In what types of assets will the fund invest? What class of properties? What geographies? What are the targeted returns? What is the execution plan to generate the targeted returns?
To sell to potential investors, fund managers should be prepared to show their performance records on deals compared to industry benchmarks. This will
… Read More