A Beginner's Guide to Real Estate Equity Partnerships // If you've ever wondered how real estate investors or investment firms buy properties worth $10 million, $50 million, $100 million, or more, the secret is that these investors almost never buy these properties entirely on their own.

The commercial real estate industry is driven in large part by private equity firms that pool capital from investors to acquire individual deals with eight-figure price tags and real estate portfolios valued at hundreds of millions of dollars (or more).

However, the exact way these partnerships work can be quite complex, so in this video we'll walk through the mechanics of a real estate equity partnership structure, explain how an equity partnership works in practice, and what different aspects of these arrangements often have the biggest impact on a real estate deal.

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Explanation of the real estate capital waterfalls: https://www.youtube.com/watch?vUm4Bx3zkKrM&t562s&ppygUqYnJlYWsgaW50byBjcmUgZXF1aXR5IHdhdGVyZmFsbCBzdHJ1Y3R1cmVz

The best waterfall structure for real estate capital: https://www.youtube.com/watch?v8CavXK-mN9U&t7s&ppygUqYnJlYWsgaW50byBjcmUgZXF1aXR5IHdhdGVyZmFsbCBzdHJ1Y3R1cmVz

Real Estate Equity Waterfalls FAQ: https://www.youtube.com/watch?vN1UcKnxFXOA&t9s&ppygUqYnJlYWsgaW50byBjcmUgZXF1aXR5IHdhdGVyZmFsbCBzdHJ1Y3R1cmVz

Catch-up clauses explained: https://www.youtube.com/watch?v2ise1fyu3B4&t1s&ppygUqYnJlYWsgaW50byBjcmUgZXF1aXR5IHdhdGVyZmFsbCBzdHJ1Y3R1cmVz

Statement on reclaims: https://www.youtube.com/watch?v_y0bQL4Pblc&t6s&ppygUqYnJlYWsgaW50byBjcmUgZXF1aXR5IHdhdGVyZmFsbCBzdHJ1Y3R1cmVz

time stamp
0:00 Introduction
0:53 The composition of a real estate partnership
2:45 The active partner
4:43 Promoted Interest
5:51 Example of a breakdown of the waterfall scenario
8:19 How to learn more about Equity Partnerships and Waterfalls

#PrivateEquity #CommercialRealEstate

*Nothing in this video should be construed as tax, legal, accounting, valuation or financial advice or recommendation. All information in this video is for educational purposes only. We recommend that you consult your personal professional advisors when making your personal investment decisions.

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